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C Company manufactures a single product and has the following cost structure:
Variable costing per unit
Direct Materials Php72Direct labor 96Variable manufacturing overhead 24Variable selling and administrative 48
Fixed Costs per month
Fixed manufacturing overhead Php2,400,000Fixed selling and administrative costs 1,400,000
Problem 1: The Company produces 24,000 units each month. Determine the unit product cost under variable costing
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It is the policy of Value Electronics to hold enough inventories to cover demand for twice the lead time. Calculate the safety stock for the rail scenario
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