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Question - SFF Company developed the following standard unit cost at 100%% of its normal production capacity, which is 50,000 units per year
Materials 10
Labor 30
Factory Overhead (30% fixed) 50
Unit product cost 90
The production is sold for P160 per unit. Variable commercial expenses are P20 per unit sold and fixed commercial expenses total P400,000 for the period. During the year, 48,000 units were sold.
Required -
1. What is your income using variable costing?
2. What is your income using full costing?
3. What is the income difference between the 2 methods?
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