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O Company produces a single product. Last year, C manufactured 17,000 units and sold 13,000 units. Production costs for the year were as follows:
Direct Materials Php153,000Direct Labor 110,000Variable manufacturing overhead 204,000Fixed manufacturing overhead 255,000
Problem 1: Sales were Php780,000 for the year, variable selling and administrative expenses were Php88,400, and fixed selling and administrative expenses were Php170,000. There was no beginning inventory. Assume the direct labor is a variable cost. The contribution margin per unit was?
Objectives:1. Apply accounting manufacturing concepts to an actual product to solidify the learning process.2. Learn how all the numbers fit together.3. Develop decision making analysis techniques.
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