The ABC garments factory produces two type of jacket, Denim and Polyester. The researchand development team is composed of two Product Engineer experts in making denim andpolyester jacket. The given information for product development shown below.Product Engineer 1 salary22,000Product Engineer 2 salary22,000Transportation expense of Product Engineer 15,000Transportation expense of Product Engineer 25,000Direct material used in sample making for Denim jacket10,000Direct material used in sample making for Polyester jacket9,000Machine electricity consumption (in Php)1,400The demand for denim jacket in color black is 4,000 pieces, while the color gray is 2,000pieces. The polyester jacket demand is 5,000 pieces. The total sales of Denim jacket (blackand gray) is Php 65, 000 and Php 55,550 in polyester jacket. The Company owner want todetermine the minimum factory overheads cost among the two type of jacket.

Factory overhead is the sum of all Indirect Material, Indirect labour and other cost which doesn't…

Answered: The ABC garments factory produces two…

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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Subject: Cost Accounting
Management would like an analysis of the profitability of a particular customer, Cell City, which has ordered the following products over the last 12 months: Number of cases Number of orders. Direct labour-hours per case Selling price per case. Direct materials cost per case Sales Costs: Direct materials Direct labour Supporting manufacturing Order processing Customer service The company's direct labour rate is $30 per hour. Required: Using the company's ABC system, compute the customer margin of Cell City. Customer margin Standard Model 290 5 0.25 $49 $ 26 70 Deluxe Model 105 2 $ 0.40 $ 69 $29 70 (70)

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The ABC garments factory produces two type of jacket, Denim and Polyester. The research and development team is composed of two Product Engineer experts in making denim and polyester jacket. The given information for product development shown below.