50 per unit Selling price P125 per unit Fixed production overhead P200,000 per quarter Fixed selling and administrative overhead P80,000 per quarter
Don Juan Ltd. Manufactures a single product for which the costs and selling prices are:
Variable production costs P 50 per unit
Selling price P125 per unit
Fixed production
Fixed selling and administrative overhead P80,000 per quarter
Normal capacity 20,000 units per quarter
Production in first quarter was 19,000 units and sales volume was 16,000 units. No opening inventory for the quarter.
The absorption costing profit for the quarter was
A. P920,000
B. P950,000
C. P960,000
D. P970,000
Step by step
Solved in 2 steps