Itzy 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 30,000 Variable factory overhead costs 20,000 Fixed factory overhead costs 25,000 Variable selling and administrative expenses 40,000 Fixed selling and administrative expenses 15,000 What is the unit product cost under variable costing? O P8.00 O P 5.00 O P6.25 O PZ00

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Chapter1: Financial Statements And Business Decisions
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What is the unit product cost under variable costing?

Itzy 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
30,000
Variable factory overhead costs
20,000
Fixed factory overhead costs
25,000
Variable selling and administrative expenses
40,000
Fixed selling and administrative expenses
15,000
What is the unit product cost under variable costing?
P8.00
P 5.00
P 6.25
P7.00
Transcribed Image Text:Itzy 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 30,000 Variable factory overhead costs 20,000 Fixed factory overhead costs 25,000 Variable selling and administrative expenses 40,000 Fixed selling and administrative expenses 15,000 What is the unit product cost under variable costing? P8.00 P 5.00 P 6.25 P7.00
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