Reference no: EM133168531

CASE 1 - Assume the following:

No. of units sold 10,000

No. of units produced 8,000

Selling price per unit Php 45

Variable materials Php 20

Variable labor Php 15

Variable overhead Php 4

Fixed overhead Php 24,000

Required - How many units be sold to break-even using variable costing (assuming there are no administrative and selling expenses)?

CASE 2 - Assume the following:

No. of units sold 10,000

No. of units produced 8,000

Selling price per unit Php 45

Variable materials Php 20

Variable labor Php 15

Variable overhead Php 4

Fixed overhead Php 24,000

Required - By how much will the cost of goods sold differ by using absorption costing as compared to variable costing. Identify whether higher or lower.