Lavender Company’s income under absorption costing was P 3,600 lower than its income under variable costing. The company sold 10,000 units during the year, and its variable costs were P 9 per unit, P 1 of which represents the variable selling expense. If production cost was P 11 per unit under absorption costing, then how many units did the company produce during the year?

Lavender Company’s income under absorption costing was P 3,600 lower than its income under variable costing. The company sold 10,000 units during the year, and its variable costs were P 9 per unit, P 1 of which represents the variable selling expense. If production cost was P 11 per unit under absorption costing, then how many units did the company produce during the year?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 16DQ

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