Consider the following: Sales price, per unit P18 per unit Standard absorption cost rate P12 per unit Standard variable cost rate P8 per unit Variable selling expense rate P2 per unit Fixed selling and administrative expenses P40, 000 Fixed manufacturing overhead P60 , 000 Last period, 13, 000 units were produced. In the current period , 15, 000 units were produced . In each period, 13 , 000 units were sold. What is the difference in reported Income under absorption and variable costing for the current period ? P Which costing method has higher operating income ? | (absorption costing or variable costing) NOTE: *If your answer is in monetary value , OMIT the peso sign (ex: if the answer is One hundred pesos just type 100) **If your answer is in thousands value , do not put space/s between the numbers and do not forget to type comma to indicate thousand value (ex: if the answer is one thousand just type 1, 000) ***If your answer has decimal places , round your answer and include only two decimal places (ex: If the answer is 58.97321 round your answer and type 58. 97)
Consider the following: Sales price, per unit P18 per unit Standard absorption cost rate P12 per unit Standard variable cost rate P8 per unit Variable selling expense rate P2 per unit Fixed selling and administrative expenses P40, 000 Fixed manufacturing overhead P60 , 000 Last period, 13, 000 units were produced. In the current period , 15, 000 units were produced . In each period, 13 , 000 units were sold. What is the difference in reported Income under absorption and variable costing for the current period ? P Which costing method has higher operating income ? | (absorption costing or variable costing) NOTE: *If your answer is in monetary value , OMIT the peso sign (ex: if the answer is One hundred pesos just type 100) **If your answer is in thousands value , do not put space/s between the numbers and do not forget to type comma to indicate thousand value (ex: if the answer is one thousand just type 1, 000) ***If your answer has decimal places , round your answer and include only two decimal places (ex: If the answer is 58.97321 round your answer and type 58. 97)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.2.5P
Related questions
Question
31
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
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.Recommended textbooks for you
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College