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SCOFIELD Corporation has the following standard costs associated with the manufacture and sale of one of its products:
Direct Materials P3.00 per unit
Direct Labor 2.50 per unit
Variable Manufacturing Overhead 1.80 per unit
Fixed Manufacturing Overhead 4.00 per unit (based on an estimate of 50,000 units per year)
Variable selling expenses .25 per unit
Fixed SG&A expense 75,000 per year
During its first year of operations of SCOFIELD manufactured 51,000 units and sold 48,000. The selling price per unit was P25. All costs were equal to standard.
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