33McDuffy Paints is a division of Chemical Paint Corporation. The division manufacturesand sells paints used in a wide variety of applications. During the coming year, it expects toell 30,000 cans for P10 per can. Duffy manages the division. He is considering producingether 30,000 or 50,000 cans during the period. Other information is presented in the schedulefr the division, in cans:000.01Beginning inventoryExpected salesSelling priceVariable manufacturing costFixed manufacturing overhead cost (total)o to30,000P 15.00000,0P 7.00P150,000nillseFixed manufacturing overhead costs per can:Based on 30,000 cansBased on 50,000 cans ie P3.00 per can (P150,000 + 50,000)anobouentP5.00 per can (P150,000 + 30,000)Manufacturing cost per unitBased on 30,000 unitsP12.00 per can (P7 variable + P5 fixed)Based on 50,000 unitsSelling and administrative expense (all fixed)P10.00 per can (P7 variable + P3 fixed)alloeP25,00000,00nstructions:Prepare an variable costing income statement with one column showing the results if3000 cans are produced, and one column showing the results if 50,000 cans are produced.

Variable costing seems to be a concept being used in management and cost accounting that excludes…

Answered: McDuffy Paints is a division of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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