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Starlight Company manufactures part 2HD for use in its production cycle. The per unit cost for 2,000 units of part 2HD are as follows: Direct
Starlight Company manufactures part 2HD for use in its production cycle. The per unit cost for 2,000 units of part 2HD are as follows: Direct Labor 25 Direct Materials 25 Fixed Overhead 20 Variable Overhead 10 United Supreme has offered to sell Starlight 2,000 units of part 2HD for P50 per unit. If starlight accepts the offer, the released facilities could be used to save P30,000 in relevant costs in its manufacture of part 2HD. In addition, P10 per unit of fixed overhead applied to part 2 HD would be eliminated. What is the net advantage (disadvantage) of buying part 2HD? O P (30,000) P 30,000 0 70,000 J.B.R TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2020 operations: P 900,000 400,000 70,000 Sales (2,000 televisions) Cost of goods sold Store manager's salary per year Operating costs per year Advertising and promotion per year Commission (4% of sales) 157,000 15,000 36,000 The total variable cost per unit sold was O 200 O P139 O P235 O P218 The following information relates to Job No. 2468, which is being carried out by Flexy Feet to meet a customer's order: Dept. A Dept. B Direct materials consumed 5,000 P 3,000 4 5 4 4 Direct labor rate per hour Production overhead per direct labor hour Direct labor hours employed Administrative and other overhead costs 400 200 20% of full production cost Profit markup 25% of selling price The total cost and expenses for Job No. 2468 O P8,200 O P9,840 O P15,600 O P13,000
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