Tyra Toy Company incurred the following costs during 20x1: Direct Materials ₱ 5,000,000 Direct Labor 3,500,000 Manufacturing Overhead Utilities (primarily electricity) 250,000 Depreciation Plant and Equipment 350,000 Insurance 260,000 Supervisory Salary 470,000 Property Taxes 330,000 Selling Cost: Advertising 315,000 Sales Commission 145,000 Administrative Costs: Salaries of top management 580,000 Office Supplies 70,000 Depreciation on Building and Equipment 140,000 The company sold all of its products manufactured during the year. Depreciation is on a straight-line basis. During 20x1, the company operated at about half of its capacity, due to a slowdown in the economy. Prospects for 20x2 are slightly better. The marketing manager, forecasts a 30 percent growth in sales over the 20x1 level. TOTAL VARIABLE COST in 20x2 amount to ₱_________________.
Tyra Toy Company incurred the following costs during 20x1:
|
Direct Materials |
₱ 5,000,000 |
|
Direct Labor |
3,500,000 |
|
Manufacturing |
|
|
Utilities (primarily electricity) |
250,000 |
|
|
350,000 |
|
Insurance |
260,000 |
|
Supervisory Salary |
470,000 |
|
Property Taxes |
330,000 |
|
Selling Cost: |
|
|
Advertising |
315,000 |
|
Sales Commission |
145,000 |
|
Administrative Costs: |
|
|
Salaries of top management |
580,000 |
|
Office Supplies |
70,000 |
|
Depreciation on Building and Equipment |
140,000 |
The company sold all of its products manufactured during the year. Depreciation is on a straight-line basis. During 20x1, the company operated at about half of its capacity, due to a slowdown in the economy. Prospects for 20x2 are slightly better. The marketing manager,
TOTAL VARIABLE COST in 20x2 amount to ₱_________________.
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