Corporation had a production run of 8,000 pairs of shoes during the last week of June, at
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Question:
Corporation had a production run of 8,000 pairs of shoes during the last week of June, at the following costs per pair:
Materials ₱ 500
Labor 400
FOH (includes 70 allowance for spoiled work) 300
Total 1,200
Final inspection revealed that 600 pairs do not meet quality standards and can be sold as seconds at ₱400 a pair.
1. If spoilage is the result of internal failure, what is the cost of each pair of shoes?
a. ₱1,200.00
b. ₱1,298.15
c. ₱1,189.19
d. ₱987.00
2. If spoilage is the result of change in design imposed by the customer, what is the cost of each pair of shoes?
a. ₱1,200.00
b. ₱1,298.15
c. ₱1,189.19
d. ₱987.00.
Related Book For
Business Logistics Supply Chain Management
ISBN: 978-0130661845
5th edition
Authors: Ronald H. Ballou
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