acationnatalaga Corporation produces a single product. Data concerning the company's first year of operation appear below: Units produced                                  10,000 Units sold                                             9,000 Selling price per unit                              P60 DM                                                          P15 DL                                                             P5 Variable OH                                              P2 Variable selling and administrative          P4 Fixed OH                                                P200,000 Fixed selling and administ

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 35P: Orman Company produces neon-colored covers for tablets (e.g., iPads). For last year, Orman reported...
icon
Related questions
Question

Vacationnatalaga Corporation produces a single product. Data concerning the company's first year of operation appear below:

Units produced                                  10,000

Units sold                                             9,000

Selling price per unit                              P60

DM                                                          P15

DL                                                             P5

Variable OH                                              P2

Variable selling and administrative          P4

Fixed OH                                                P200,000

Fixed selling and administrative            P70,000

If the company produces 12,000 units and sells 13,000 units in the second year, how much higher or lower will the variable operating income be compared to the absorption operating income. Indicate your answer as a positive number if higher ex.123456 or a negative number if lowe ex.(123456)

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Cost Sheet
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub