XY Company manufactures and sells LCD monitor at P5000 each. The production officer reported the following: Sale price: P5000 per monitor direct materials cost: P1000 per unit direct labor cost: P550 per unit other overhead cost P950 per unit Fixed costs related to the production are also reported: salary of management: P200,000 rent for the factory: P150,000, other salaries: P140,000 depreciation of equipment: P12,000 Compute the total variable cost

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ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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Management Science:

  1. XY Company manufactures and sells LCD monitor at P5000 each. The production officer reported the following:
  • Sale price: P5000 per monitor
  • direct materials cost: P1000 per unit
  • direct labor cost: P550 per unit
  • other overhead cost P950 per unit
  • Fixed costs related to the production are also reported:
  • salary of management: P200,000
  • rent for the factory: P150,000,
  • other salaries: P140,000
  • depreciation of equipment: P12,000

    Compute the total variable cost
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9780357033791
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