produce 150,000 units of Product X during the yea expected to be 140,000 units. The following data were provided for utations: Standard cost per unit Direct material P8.20 Direct labor Variable factory overhead Fixed factory overhead Total standard product cost 4.50 2.30 2.00 P17.00 Variable selling and administrative Expenses Budgeted annual fixed selling & administrative expenses "otal capital employed xpected rate of return on investment 1: P2.50 P200,000 800,000 30%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Sports Unlimited expects to produce 150,000 units of Product X during the year. The
sales demand is expected to be 140.000 units The following data were provided fof pricns
computations:
Standard cost per unit
Direct material
Direct labor
P8.20
4.50
Variable factory overhead
Fixed factory overhead
Total standard product cost
2.30
2.00
P17.00
Variable selling and administrative Expenses
Budgeted annual fixed selling & administrative expenses
Total capital employed
Expected rate of return on investment
Required:
1. Compute the expected selling price.
2. Compute the expected selling price if customers are entitled to a 3% sales discount.
P2.50
P200,000
800,000
30%
Transcribed Image Text:Sports Unlimited expects to produce 150,000 units of Product X during the year. The sales demand is expected to be 140.000 units The following data were provided fof pricns computations: Standard cost per unit Direct material Direct labor P8.20 4.50 Variable factory overhead Fixed factory overhead Total standard product cost 2.30 2.00 P17.00 Variable selling and administrative Expenses Budgeted annual fixed selling & administrative expenses Total capital employed Expected rate of return on investment Required: 1. Compute the expected selling price. 2. Compute the expected selling price if customers are entitled to a 3% sales discount. P2.50 P200,000 800,000 30%
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