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1. What is the unit product cost under absorpotion costing? 2. What is the unit product cost under variable costing?

1. What is the unit product cost under absorpotion costing? 2. What is the unit product cost under variable costing?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. What is the unit product cost under absorpotion costing?

2. What is the unit product cost under variable costing?

Everlasting Co. has the following data pertaining to its 1st quarter of operations: Activity level units Production Sales February 10,000 7,000 March January 10,000 10,000 10,000 11,000 Cots incurred in the different areas of operation were as follows: Per unit Per month P 20 Direct Materials Direct Labor 15 Variable factory overhead Fixed factory overhead Variable selling and administrative 12 P60,000|| Fixed selling and administrative 30,000 Fixed factory overhead costs per month are based on the company's normal capacity of 10,000 units. The company sells the product at P75 per unit.
Transcribed Image Text:Everlasting Co. has the following data pertaining to its 1st quarter of operations: Activity level units Production Sales February 10,000 7,000 March January 10,000 10,000 10,000 11,000 Cots incurred in the different areas of operation were as follows: Per unit Per month P 20 Direct Materials Direct Labor 15 Variable factory overhead Fixed factory overhead Variable selling and administrative 12 P60,000|| Fixed selling and administrative 30,000 Fixed factory overhead costs per month are based on the company's normal capacity of 10,000 units. The company sells the product at P75 per unit.
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