PROBLEM I, During the year 200A, Wouie Corporation's production was equal to its normal capacity of 1,000 units, It sold 900 units at a price of P50 per unit, The following costs were incurred during the year: Total Cost P 12,000 10,000 8,000 6,000 4,500 Cost per Unit P 12 Direct Materials Direct Labor 10 Variable Factory Overhead Fixed Factory Overhead & 6 Variable Selling Administrative 5 Expenses Fixed Selling & Administrative Expenses 3,000 3 Variable selling and administrative cost per unit = Total / Units Sold = P 4,500 / 900 = P 5 Required: 1. Product cost per unit under absorption and variable costing 2, Income under absorption and variable costing 3. Computation of and accounting for the difference in income
PROBLEM I, During the year 200A, Wouie Corporation's production was equal to its normal capacity of 1,000 units, It sold 900 units at a price of P50 per unit, The following costs were incurred during the year: Total Cost P 12,000 10,000 8,000 6,000 4,500 Cost per Unit P 12 Direct Materials Direct Labor 10 Variable Factory Overhead Fixed Factory Overhead & 6 Variable Selling Administrative 5 Expenses Fixed Selling & Administrative Expenses 3,000 3 Variable selling and administrative cost per unit = Total / Units Sold = P 4,500 / 900 = P 5 Required: 1. Product cost per unit under absorption and variable costing 2, Income under absorption and variable costing 3. Computation of and accounting for the difference in income
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...
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