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The Chromosome Manufacturing Company produces two products, X and Y. The company president, Gene Mutation, is concerned about the fierce competition in the market for

The Chromosome Manufacturing Company produces two products, X and Y. The company president, Gene Mutation, is concerned about the fierce competition in the market for product X. He notes that competitors are selling X for a price well below Chromosome's price of P12.70. At the same time, he notes that competitors are pricing product Y almost twice as high as Chromosome's price of P12.50.

Mr. Mutation has obtained the following data for a recent time period:

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Product X Product Y Number of units 11,000 3,000 Direct Materials cost per unit P3.23 P3.09 Direct Labor cost per unit P2.22 P2.10 Direct Labor hours 10,000 2,500 Machine hours Inspection hours Purchase orders 2,100 2,800 80 100 10 10 Mr. Mutation has learned that overhead costs are assigned to products on the basis of direct labor hours. The overhead costs for his time period consisted of the following items: Overhead Cost item Inspection Costs Purchasing Costs Machine Cost Total Amount P16,200 8,000 49,000 P73,200

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