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Common Company had the following information from their financial reports: Sales (P400 per unit) P 3,200,000.00 Manufacturing Costs Direct Materials 800,000.00 Direct Labor 480,000.00 Variable
Common Company had the following information from their financial reports: Sales (P400 per unit) P 3,200,000.00 Manufacturing Costs Direct Materials 800,000.00 Direct Labor 480,000.00 Variable Overhead 320,000.00 Fixed Overhead 500,000.00 Selling and Administrative Costs Variable (based on unit sales) 320,000.00 Fixed (Allocated) 300,000.00 Fixed Overhead pertains to salaries of departmental personnel and other controllable costs. What amount should be considered for evaluation of Common company, given that it is delegated as a Profit Center?
| Common Company had the following information from their financial reports: | ||||||
| Sales (P400 per unit) | P | 3,200,000.00 | ||||
| Manufacturing Costs | ||||||
| Direct Materials | 800,000.00 | |||||
| Direct Labor | 480,000.00 | |||||
| Variable Overhead | 320,000.00 | |||||
| Fixed Overhead | 500,000.00 | |||||
| Selling and Administrative Costs | ||||||
| Variable (based on unit sales) | 320,000.00 | |||||
| Fixed (Allocated) | 300,000.00 | |||||
| Fixed Overhead pertains to salaries of departmental personnel and other controllable costs. What amount should be considered for evaluation of Common company, given that it is delegated as a Profit Center? |
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Financial Accounting An Integrated Statements Approach
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
2nd Edition
324312113, 978-0324312119
