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XYZ Company, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price P103
Units in beginning inventory 0
Units produced 6,800
Units in ending inventory 200
Variable cost per unit:
Direct materials P22
Direct labor 23
Variable overhead 4
Variable selling and administrative 8
Fixed costs:
Fixed overhead P231,200
Fixed selling and administrative 59,400
Question 1. The total contribution margin for the month under variable costing approach is
a. P72,400
b. P132,000
c. P303,600
d. P356,400
Question 2. The total gross margin for the month under absorption costing approach is
a. P19,800
c. P148,600
d. P303,600
Question 3. What is the total period cost for the month under variable costing approach?
a. P112,200
b. P231,200
c. P290,600
d. P343,400
Question 4. What is the total period cost for the month under absorption costing approach?
a. P59,400
b. P112,200
c. P231,200
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