Homework Help is Here – Start Your Trial Now!
Business
Accounting
The firm manufactures a product with the following costs: Direct materials→₱18.00; Direct labor→₱11.90; Variable manufacturing overhead→₱2.10; Fixed manufacturing overhead→₱1,422,000; Variable selling, general and administrative expenses→₱3.60; Fixed selling, general and administrative expenses→₱1,540,500. The company uses the absorption costing approach to cost-plus pricing. The pricing calculations are based on budgeted production and sales of 79,000 units per year. The company has invested ₱420,000 in this product and expects a return on investment of 15%. The selling price based on the absorption costing approach would be closest to: a. ₱108.04 b. ₱73.90 c. ₱47.29 d. ₱73.1

The firm manufactures a product with the following costs: Direct materials→₱18.00; Direct labor→₱11.90; Variable manufacturing overhead→₱2.10; Fixed manufacturing overhead→₱1,422,000; Variable selling, general and administrative expenses→₱3.60; Fixed selling, general and administrative expenses→₱1,540,500. The company uses the absorption costing approach to cost-plus pricing. The pricing calculations are based on budgeted production and sales of 79,000 units per year. The company has invested ₱420,000 in this product and expects a return on investment of 15%. The selling price based on the absorption costing approach would be closest to: a. ₱108.04 b. ₱73.90 c. ₱47.29 d. ₱73.1

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
The firm manufactures a product with the following costs: Direct materials→₱18.00; Direct labor→₱11.90; Variable manufacturing overhead→₱2.10; Fixed manufacturing overhead→₱1,422,000; Variable selling, general and administrative expenses→₱3.60; Fixed selling, general and administrative expenses→₱1,540,500. The company uses the absorption costing approach to cost-plus pricing. The pricing calculations are based on budgeted production and sales of 79,000 units per year. The company has invested ₱420,000 in this product and expects a return on investment of 15%. The selling price based on the absorption costing approach would be closest to: a. ₱108.04 b. ₱73.90 c. ₱47.29 d. ₱73.10
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS