GwapoAko Corporation provides the following information for the month of February based on the production of 20,000 units: Direct materials - P 50,000; Direct labor - P30,000; Variable factory overhead costs - P20,000; Fixed factory overhead costs - P25,000; Variable selling and administrative expenses - P40,000; Fixed selling and administrative expenses - P15,000. How many units were sold if variable costing profit is higher than absorption costing profit by P 2,500? * a. 18,000 units b. 18,889 units c. 21,111 units d. 22,000 units
GwapoAko Corporation provides the following information for the month of February based on the production of 20,000 units: Direct materials - P 50,000; Direct labor - P30,000; Variable factory overhead costs - P20,000; Fixed factory overhead costs - P25,000; Variable selling and administrative expenses - P40,000; Fixed selling and administrative expenses - P15,000. How many units were sold if variable costing profit is higher than absorption costing profit by P 2,500? * a. 18,000 units b. 18,889 units c. 21,111 units d. 22,000 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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GwapoAko Corporation provides the following information for the month of February based on the production of 20,000 units: Direct materials - P 50,000; Direct labor - P30,000; Variable factory overhead costs - P20,000; Fixed factory overhead costs - P25,000; Variable selling and administrative expenses - P40,000; Fixed selling and administrative expenses - P15,000.
How many units were sold if variable costing profit is higher than absorption costing profit by P 2,500? *
How many units were sold if variable costing profit is higher than absorption costing profit by P 2,500? *
a. 18,000 units
b. 18,889 units
c. 21,111 units
d. 22,000 units
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