Reference no: EM132903111

Problem 1: Carnation Company produced 10,000 units and sold 9,000 units. Fixed manufacturing overhead costs were P20,000, and variable manufacturing overhead costs were P3 per unit. Which of the following best describes the net income under the absorption costing method?

Select one:

a. P5,000 more than the net income under the variable costing method
b. P2,000 more than the net income under the variable costing method
c. P2,000 less than the net income under the variable costing method
d. P5,000 less than the net income under the variable costing method