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Silvestre Company COMPUTATION?
Silvestre Company estimated its overhead to produce 80,000 units at P1,000,000 (60 percent is variable. If the estimate changes, and Silvestre now expects to produce 100,000 units, what would the budgeted overhead be if the cost behavior remains the same?
1 Answer
- ?Lv 63 weeks ago
Variable costs = 60% x 1000000 = 600000
Fixed costs = 1000000-600000=400000
Variable cost per unit = 600000/80000 = 7.50
Total cost at 100000 units = 100000 x 7.50 + 400000 = 1150000
