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The following data for the just-completed year are taken from the accounting records of Eccles Company: Costs incurred: Advertising expense P100,000 Direct labor cost 90,000
The following data for the just-completed year are taken from the accounting records of Eccles Company: Costs incurred: Advertising expense P100,000 Direct labor cost 90,000 132,000 Purchases of raw materials 80,000 Rent, factory building Indirect labor 56,300 Sales commissions 35,000 9,000 Utilities, factory Maintenance, factory equipment 24,000 700 Supplies, factory Depreciation, office equipment Depreciation, factory equipment 8,000 40,000 Inventories: Beginning of the Year End of the Year Raw Materials P 8,000 P10,000 Work-in-Process 5,000 20,000 Finished Goods 70,000 25,000 The selling and administrative expenses amounts to O P135,000 O P150,000 O 143,000 O P108,000 Toledo Toy Company incurred the following costs during 20x4. The company sold all of its products manufactured during the year. Direct Materials 5,000,000 Direct Labor 3,500,000 Manufacturing Overhead: Utilities (primarily electricity) 250,000 Depreciation Plant and Equipment 350,000 Insurance 260,000 Supervisory Salary 470,000 Property Taxes 330,000 Selling Cost: Advertising 315,000 Sales Commission 145,000 Administrative Costs: Salaries of Top management 580,000 Office Supplies 70,000 Depreciation on Building and Equipment 140,000 During 20x4, the company operated at about half of its capacity, due to a slowdown in the economy. Prospects for 20x5 are slightly better. Jared Lowes, the marketing manager, forecasts a 30 percent growth in sales over the 20x4 level How much is the total variable cost of Toledo Toy Company in 20x5? O P11,238,500 P11,563,000 O P11,375,000 O P11,050,000
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