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Exercise VI The estimated unit costs for Rizal Manufacturing Company, when it is operating at a relevant range production level of 10,000 12,000 units

 

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Exercise VI The estimated unit costs for Rizal Manufacturing Company, when it is operating at a relevant range production level of 10,000 12,000 units per month are as follows: Variable Costs Direct materials Per Unit P 64 Direct labor 20 Variable factory overhead 30 Variable marketing expense 6 Total Fixed factory overhead P 120,000 Fixed marketing expense 80,000 Fixed Administrative expense 100,000 Sales Price 180 equired: Compute the prime cost per unit. Compute the conversion cost per unit at 10,000 units production level. At the production level and sales volume of 10,000 units (Production - Sales), determine the following using absorption costing a. Manufacturing cost per unit b. Gross margin per unit c. Total manufacturing cost d. Gross margin e. Net profit

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