The following information were obtained from the records of HILO Company: Production in units 8, 000 Manufacturing costs: Direct Materials P5 per unit Direct labor 3 per unit Variable overhead 1 per unit
The following information were obtained from the records of HILO Company: Production in units 8, 000 Manufacturing costs: Direct Materials P5 per unit Direct labor 3 per unit Variable overhead 1 per unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![The following information were obtained from the records of HILO Company:
Production in units 8, 000
Manufacturing costs:
Direct Materials P5 per unit
Direct labor 3 per unit
Variable overhead 1 per unit
Fixed overhead total 100, 000
Sales price 40 per unit
The operating profit under absorption costing is P30, 000 and the unit sales is 5,000.
Questions:
a. What is the amount profit/(loss) under absorption costing?
(profit/loss)
b. What is the total period expense recognized by the company if it used variable costing
system?
c. What is the total period costs under absorption costing ?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F75c7158e-4403-4ec6-8738-45a96763278a%2F5d24e167-80e1-4c8a-9e72-d82a6cf9b427%2Fv768dl7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following information were obtained from the records of HILO Company:
Production in units 8, 000
Manufacturing costs:
Direct Materials P5 per unit
Direct labor 3 per unit
Variable overhead 1 per unit
Fixed overhead total 100, 000
Sales price 40 per unit
The operating profit under absorption costing is P30, 000 and the unit sales is 5,000.
Questions:
a. What is the amount profit/(loss) under absorption costing?
(profit/loss)
b. What is the total period expense recognized by the company if it used variable costing
system?
c. What is the total period costs under absorption costing ?
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