Reference no: EM132548363

JYD Corporation uses an absorption costing system for internal reporting purposes. At present, however, it is considering to use the variable costing system.

Following are some data regarding JYD Corporation's budgeted and actual operations for the calendar year 2018.

Costs                                          Budgeted                        Actual

Materials                                   P25,200                      P23,400

Labor                                          18,480                      17,160

Variable Factory Overhead               8,400                        7,800

Fixed Factory Overhead                   10,640                     10,000

Variable Selling Expenses                  16,800                      15,000

Fixed Selling Expenses                      14,700                     14,700

Variable Administrative Expenses             4,200                  3,750

Fixed Administrative Expenses                 6,300                   6,375

Total                                                   P104,720                P98,185

                                                                      Budgeted                     Actual

                                                                        (Units)                        (Units)

Finished goods inventory beginning                280                       280

Production                                                1,120                         1,040

Sales                                                          1,120                       1,000

The budgeted costs were computed based on the budgeted production and sales of 1,120 units, the company's normal capacity level. The Corporation uses a predetermined factory overhead rate for applying manufacturing overhead costs to its product. The denominator level used in developing the predetermined rate is the firm's normal capacity. Any over or under applied factory overhead cost is closed to cost of goods sold at the end of the year.

There is no work in process inventories at either the beginning or end of the year. The actual selling price was the same as the amount planned, P130 per unit.

The previous year's planned per unit manufacturing costs were the same as the current planned unit manufacturing cost. The beginning inventory of finished goods for absorption costing purposes was valued at such per- unit manufacturing cost.

Question 1. What is the standard product costs per unit under Absorption Costing and Variable Costing?