ne 2021, at the following costs per pair: Materials, P80; Labor, P50; and Overhead (125% of direct labor cost). Final inspection revealed that 500 pairs were spoiled which were sold as seconds for P20, 000. The good units were then shipped to the customer at cost plus 50% mark-up on cost. Assuming the spoilage is a result of changes in the specification of the customer, the cost per good units is: A. 192.5 B. 209.44
ne 2021, at the following costs per pair: Materials, P80; Labor, P50; and Overhead (125% of direct labor cost). Final inspection revealed that 500 pairs were spoiled which were sold as seconds for P20, 000. The good units were then shipped to the customer at cost plus 50% mark-up on cost. Assuming the spoilage is a result of changes in the specification of the customer, the cost per good units is: A. 192.5 B. 209.44
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
MARIKINA SHOE Company had a production run of 5, 000 pairs of quality shoes during the month of June 2021, at the following costs per pair: Materials, P80; Labor, P50; and
A. 192.5
B. 209.44
C. 200.53
D. 288.75
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