ENEROW Corp. Is capable of turning out fifteen (15) completed units every 30 seconds. The plant normally operates five days a week on a two eight-hour shift. Each year, the factory is closed twelve (12) working days for holidays. Machinery is idle 750 hours for cleaning, oiling and maintenance. Normal sales averages 110,000 units a year over a five-year period. The expected sales volume for the year is 112,500 units. The fixed cost of operating the plant amounted to P385,000 per year. Compute the fixed unit costs under Practical capacity.

ENEROW Corp. Is capable of turning out fifteen (15) completed units every 30 seconds. The plant normally operates five days a week on a two eight-hour shift. Each year, the factory is closed twelve (12) working days for holidays. Machinery is idle 750 hours for cleaning, oiling and maintenance. Normal sales averages 110,000 units a year over a five-year period. The expected sales volume for the year is 112,500 units. The fixed cost of operating the plant amounted to P385,000 per year. Compute the fixed unit costs under Practical capacity.

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Description: Show the solution in good accounting form ENEROW Corp. Is capable of turning out fifteen (15) completed units every 30 seconds. The plantnormally operates five days a week on a two eight-hour shift. Each year, the factory is closed twelve (12)working

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 6E: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of...

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