Shalom Company expects to produce 1,200,000 units of Peace Products in 2023. Monthlyproduction is expected to range from 80,000 to 120,000 units. Budgeted variable manufacturingcosts per unit are as follows: direct materials P4, direct labor P6, and overhead P8. Budgetedfixed manufacturing costs per unit for depreciation are P2 and for supervision P1. Amounts mustbe in whole numbers. Example: 88,000 or (88,000)In your flexible budget report, what is the total fixed manufacturing costs for 60,000 units? Shalom Company manufactures and sells Peace products. During the year, the companyestimated for the production and sale of 15,000 units of Peace products. Each unit requires 1.50kilos of direct material at a cost of P8 per pound. It takes 15 minutes to manufacture each unit ofPeace product at a cost of PO.18 per minute. At the end of the current year, Shalom had producedand sold 16,000 Peace products for P50 per unit. The actual costs for direct materials and directlabor were P197,200, and P42,300, respectively.In your flexible budget performance report, identify the difference between budgeted and actualcosts and indicate as favorable or unfavorable.Format should be: 8,000 F or 8,000 UFNo need to indicate if the amount is positive or negative.total prime costs

Total fixed manufacturing cost is the cost which do not change or vary with the change in the…

Shalom Company expects to produce 1,200,000 units of Peace Products in 2023. Monthly production is expected to range from 80,000 to 120,000 units. Budgeted variable manufacturing costs per unit are as follows: direct materials P4, direct labor P6, and overhead P8. Budgeted fixed manufacturing costs per unit for depreciation are P2 and for supervision P1. Amounts must be in whole numbers. Example: 88,000 or (88,000) In your flexible budget report, what is the total fixed manufacturing costs for 60,000 units?

Shalom Company expects to produce 1,200,000 units of Peace Products in 2023. Monthly production is expected to range from 80,000 to 120,000 units. Budgeted variable manufacturing costs per unit are as follows: direct materials P4, direct labor P6, and overhead P8. Budgeted fixed manufacturing costs per unit for depreciation are P2 and for supervision P1. Amounts must be in whole numbers. Example: 88,000 or (88,000) In your flexible budget report, what is the total fixed manufacturing costs for 60,000 units?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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