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  • Entrep Costs

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    Dianne Ulanday
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    The document outlines the costs to produce 1000 packs of veggie chips made from malunggay seeds. Total product costs are ₱78,005 which includes direct material costs of ₱10,379, direct labor costs of ₱24,000, manufacturing overhead of ₱19,126, indirect materials of ₱20,500, and indirect labor of ₱4,000. The per unit cost is ₱78.005. With a 250% markup, the selling price per unit is ₱273.02.

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    The document outlines the costs to produce 1000 packs of veggie chips made from malunggay seeds. Total product costs are ₱78,005 which includes direct material costs of ₱10,379, direct labor costs of ₱24,000, manufacturing overhead of ₱19,126, indirect materials of ₱20,500, and indirect labor of ₱4,000. The per unit cost is ₱78.005. With a 250% markup, the selling price per unit is ₱273.02.

    Copyright:

    © All Rights Reserved
    Download as TXT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    2 views2 pages

    Entrep Costs

    Uploaded by

    Dianne Ulanday
    The document outlines the costs to produce 1000 packs of veggie chips made from malunggay seeds. Total product costs are ₱78,005 which includes direct material costs of ₱10,379, direct labor costs of ₱24,000, manufacturing overhead of ₱19,126, indirect materials of ₱20,500, and indirect labor of ₱4,000. The per unit cost is ₱78.005. With a 250% markup, the selling price per unit is ₱273.02.

    Copyright:

    © All Rights Reserved
    Download as TXT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Veggie chips:

    Product Cost
    Direct Material
    Malunggay seeds: 35 Pesos/10 seeds x 5 = 175
    Land farm: Rent 8,000/month
    olive oil: 1,274/5 Liters
    packaging: 50 pieces plastic bags 14 x 20 cm = 500 pesos
    label A4 Kraft Matte Sticker paper Light 29.7x21 cm: 43 pesos/20 pieces x 10 = 430
    pesos
    175 + 8,000 + 1,274 + 500 + 430 = 10,379

    Direct Labor
    Wage (Includes insurance): 8,000 per employee (1 month) x 3 = 24,000
    Employees: 1 head supervisor/worker, 2 assistant workers

    Manufacturing overhead
    gas stove: 1000/tank
    commercial burner: 12,500 pesos
    cooking pans (Large 50cm):
    stainless steel spatula 6#Sianse 42cm: 36 pesos x 3 + 38 (delivery fee) = 146
    Canon printer: 2,350
    A4 bond paper for reports/letters/documentation: 100 pesos
    scissors:30 pesos
    ink: 1000 pesos/batch
    computer desktop with mouse etc.(2nd hand): 20,000 pesos
    1000 + 12,500 + 146 + 2,350 + 100 + 30 + 1000 + 20,000 = 19,126

    Indirect materials
    motorcycle for delivery (2nd hand): 20,000 pesos
    electricity bill: 300/month
    water bill:200 pesos/month
    20,000 + 300 + 200 = 20,500

    Indirect labor
    Freelance Delivery boy: 50 pesos/delivery

    Total product costs: ₱ 78,005


    (direct material) ₱ 10,379
    (direct labor ) ₱ 24,000
    (manufacturing overhead) ₱ 19,126
    (indirect materials) ₱ 20,500
    (indirect labor estimate) ₱ 4,000

    As this is the cost to produce


    1000 plastic pack of MALUNGGAY VEG. CHIPS, the company has a
    per unit cost of ₱ (₱78,005/ 1000 = ₱ 78.005).

    Expense/Cost

    Produce = 1000
    Product Unit cost = ₱ 78,005/1000 = ₱ 78.005
    Mark up % = 250%

    Mark up = ₱ 195.0125
    Selling price = Product unit cost + Mark up
    = 78.005 + 195.0125
    = 273.0175
    = ₱ 273.02

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