Find how much savings in fixed factory overhead per unit

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Reference no: EM132693517

Each of the five (5) workers in a factory is being paid P250 per day. For every unit produced in excess of 25 units in one day, a worker is paid P12. Fixed factory overhead per annum is P198,000 and there are approximately 330 working days in one year. Production data for Januar 6 and 7, 20C show the following number of units produced by each worker:

January 6 =

Abdon - 25,

Belleza - 27,

Cortes - 24,

Drillon - 24,

Emilio - 28;

January 7 =

Abdon - 26,

Belleza - 26,

Cortes - 28,

Drillon - 27,

Emilio -

Problem 1: How much savings in fixed factory overhead per unit was effected assuming that additional output is due to the incentive given?

Reference no: EM132693517

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