3.16 A company had income of P40,000 using variable costing for a given period. Beginning and ending inventories for that period were 18,000 and 13,000 units, respectively. Ignoring income taxes, if the fixed overhead application rate was P7 per unit, what would the income be if absorption costing was used?

3.16 A company had income of P40,000 using variable costing for a given period. Beginning and ending inventories for that period were 18,000 and 13,000 units, respectively. Ignoring income taxes, if the fixed overhead application rate was P7 per unit, what would the income be if absorption costing was used?

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Description: 3.16A company had income of P40,000 using variable costing for a given period. Beginningand ending inventories for that period were 18,000 and 13,000 units, respectively. Ignoringincome taxes, if the fixed overhead application rate was P7 per unit,

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 4BE

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