GenoPearls Corp uses standard absorption costing, basing its standard fixed cost on 300,000 units of product per year and P 450,000 semi-annual budgeted fixed manufacturing overhead cost. Standard variable manufacturing cost is P 12.00 for two units. Results of 2013 are as follows: Unit production is 290,000 units; units’ sales at P 20.00 per unit totaled 270,000 units; actual variable manufacturing cost is P 1,715,000; actual fixed manufacturing cost is P 910,000; actual fixed selling expense is P 300,000 and actual variable selling and admin expense is P 500,000. There were no beginning inventories. Compute the net income under variable costing.
GenoPearls Corp uses standard absorption costing, basing its standard fixed cost on 300,000 units of product per year and P 450,000 semi-annual budgeted fixed manufacturing overhead cost. Standard variable manufacturing cost is P 12.00 for two units. Results of 2013 are as follows: Unit production is 290,000 units; units’ sales at P 20.00 per unit totaled 270,000 units; actual variable manufacturing cost is P 1,715,000; actual fixed manufacturing cost is P 910,000; actual fixed selling expense is P 300,000 and actual variable selling and admin expense is P 500,000. There were no beginning inventories. Compute the net income under variable costing.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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GenoPearls Corp uses
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