.AA Mouse, Inc. makes a special mouse for computers. Each mouse sells for Php 25 and annual production and sales are as 120,000 units. Cost of each mouse are as follows: Direct Material Php6.00, Direct Labor 3.00, Variable Overhead 0.80, Variable Selling expenses Php 2.2, and Total Fixed Overhead Cost Php 589,550.00. Calculate the unit contribution margin in pesos. 24.Based on the facts of AA Mouse, Inc. What is the contribution margin ratio for the product? 25.Based on the facts of AA Mouse, Inc. How many mice must the company sell if it desires to earn Php 996,450 in before-tax profits?
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
23.AA Mouse, Inc. makes a special mouse for computers. Each mouse sells for Php 25 and annual production and sales are as 120,000 units. Cost of each mouse are as follows: Direct Material Php6.00, Direct Labor 3.00, Variable
24.Based on the facts of AA Mouse, Inc. What is the contribution margin ratio for the product?
25.Based on the facts of AA Mouse, Inc. How many mice must the company sell if it desires to earn Php 996,450 in before-tax profits?
Step by step
Solved in 2 steps with 2 images
