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    The document contains two examples calculating marginal cost and product cost. For Sanders Boutique, the marginal cost of producing an additional 250 sandals was computed to be P40. For Maple Berry Inc., the marginal cost of producing maple syrup was computed to be P200 based on the direct and variable costs. The product cost for Maple Berry Inc. to produce maple syrup was calculated to be P400 by including the fixed overhead cost.

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    The document contains two examples calculating marginal cost and product cost. For Sanders Boutique, the marginal cost of producing an additional 250 sandals was computed to be P40. For Maple Berry Inc., the marginal cost of producing maple syrup was computed to be P200 based on the direct and variable costs. The product cost for Maple Berry Inc. to produce maple syrup was calculated to be P400 by including the fixed overhead cost.

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    70 views1 page

    08 Activity 01

    Uploaded by

    •MUSIC MOOD•
    The document contains two examples calculating marginal cost and product cost. For Sanders Boutique, the marginal cost of producing an additional 250 sandals was computed to be P40. For Maple Berry Inc., the marginal cost of producing maple syrup was computed to be P200 based on the direct and variable costs. The product cost for Maple Berry Inc. to produce maple syrup was calculated to be P400 by including the fixed overhead cost.

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    of 1

    JAVELLANA JESSEL G.

    BSBA-OM 201A

    Sanders Boutique
    Sanders Boutique sells custom-made sandals in a provincial resort. The company produces 2,000 sandals
    in
    February 201A for a total cost of P50,000. The total production cost increases to P60,000 after
    producing
    additional 250 sandals.
    A. Compute the marginal cost.

    Change∈total cost
    Marginal cost=
    Change∈output
    60,000−50,000
    =
    2,250−2,000
    10,000
    =
    250
    =40

    Maple Berry Inc.


    Maple Berry Inc. is the top producer of maple syrup in a provincial district. The following cost per unit
    associated with their production of maple syrup are available:
    Direct materials P50
    Direct wages 50
    Variable overhead 100
    Fixed overhead 200
    Requirements: (2 items x 10 points)
    A. Compute the marginal cost
    Marginal cost = Direct Material + Direct Wages + Variable Overhead
    = 50 + 50 + 100
    = 200
    B. Compute the product cos
    Product Cost = Direct Material + Direct Wages + Variable Overhead + Fixed Overhead
    = 50 + 50 + 100 + 200
    = 400

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