Reference no: EM133138481
Question - Gemini Corporation has the following standard costs associated with the manufacture and sale of one of its products:
Direct material P4.00 per unit
Direct labor 3.20 per unit
Variable manufacturing overhead 1.80 per unit
Fixed manufacturing overhead P4.00 per unit (based on an estimate of 50,000 units per year)
Variable selling expenses 1.00per unit
Fixed SG&A expense P75,000 per year
During its first year of operations Anderson manufactured 50,000 units and sold 45,000. The selling price per unit was P26. All costs were equal to standard.
Based on variable costing, compute the income before income taxes for the year?