VXY Corporation has the following standard costs associated with the manufacture and sale of one of its products: Direct material P 3.00 per unit Direct labor. P 2.50 per unit Variable manufacturing overhead. P 2.00 per unit Fixed manufacturing overhead. P 4.00 per unit (based on an estimate of 50,000 units per year) Variable selling expenses. P 0.25 per unit Fixed SG&A expense P
VXY Corporation has the following standard costs associated with the manufacture and sale of one of its products: Direct material P 3.00 per unit Direct labor. P 2.50 per unit Variable manufacturing overhead. P 2.00 per unit Fixed manufacturing overhead. P 4.00 per unit (based on an estimate of 50,000 units per year) Variable selling expenses. P 0.25 per unit Fixed SG&A expense P
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
VXY Corporation has the following standard costs associated with the manufacture and sale of one of its products:
Direct material P 3.00 per unit
Direct labor. P 2.50 per unit
Variable manufacturing
Fixed manufacturing overhead. P 4.00 per unit (based on an estimate of 50,000 units per year)
Variable selling expenses. P 0.25 per unit
Fixed SG&A expense P 75,000 per year
During 2021, its first year of operations, VXY manufactured 51,000 units and sold 48,000. The selling price per unit was P25. All costs were equal to standard.
1. The volume variance under absorptoon costing is.
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Follow-up Question
Refer to Gjerty Corporation. Under absorption
production cost per unit for the current year was
a. P11.30.
b. P 7.30.
c. P11.55.
d. P13.05.
Solution
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