Problem 9

Blanche Corporation estimated its unit costs of producing and selling 12,000 units per month as
follows:
Direct materials used P 32.00
Direct labor 20.00
Variable manufacturing overhead 15.00
Fixed manufacturing overhead 6.00
Variable marketing costs 3.00
Fixed marketing costs __4.00
Estimated unit cost P 80.00
Compute:
1. Total variable costs per month

2. Total fixed costs per month

Direct materials used 32.00

Direct labor 20.00
Variable manufacturing overhead 15.00
Variable marketing costs 3.00
Total variable costs per unit X P 70.00
Number of unit produced and sold P12,000
Total variable costs per month P 840,000

Fixed manufacturing overhead 6.00

Fixed marketing costs 4.00
Total fixed costs per unit X P10.00
Number of unit produced and sold P12,000
Total fixed costs per month P 120,000