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Question - Ethel Company manufactures electric motors for electric fans. The company uses the JIT/Backflush Costing to manufacture the electric motor. The projected labor and factory overhead is P3,685,000; materials costs, P28 per unit. Planned production included 2,000 hours to produce 13,750 electric motors. Actual production for January was 800 units and electric motors shipped are 690 units. Find the total manufacturing cost per unit?
a. P296
b. P268
d. P240
c. 1,870.50
On what principles would distinguish between capital and revenue expenditure? The cost of repairs and an extension to the premises.
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