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Question - Gale Company's income under absorption costing was Php120,000 lower than its income under variable costing. The company sold 22,400 units during the year, and its variable costs were php210 per unit, Php24 of which represents the variable selling expenses. Production cost was Php250 per unit under absorption costing. How many units did the company produce during the year?
Gale Company's income under absorption costing was Php120,000 lower than its income under variable costing. The company sold 22,400 units during the year, and its variable costs were php210 per unit, Php24 of which represents the variable selling expenses. Production cost was Php250 per unit under absorption costing. Determine the fixed factory overhead rate.
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