Reference no: EM133179565

Question 1 - Company X produces product X. The company incurred the following costs in manufacturing and selling the product for the year 2013:

Variable manufacturing cost of P 120,000

Fixed manufacturing cost of P 80,000

Selling expense of P 3.00 per unit

Administrative expense of P 100,000

Selling price per unit of P 10.00

Units produced is 80,000 units

Ending inventory under absorption costing is P 12,500

Ending inventory under variable costing is P 7,500

There is no beginning inventories

Net income under variable costing is P 232,500

Compute the gross profit under absorption costing?

Question 2 - P Company produces three types of products- product A, product B and product C. Product A requires 200 machine setups and machine hours used on it were 1,000. Product B requires 400 machine setups and machine hours used on it were 500. Product C requires 620 machine setups and machine hours used on it were 1,500. The company has defined an activity cost pool machine setups for which the cost driver is number of machine setups. The total overhead cost assigned to that cost pool was P183,000. The machine set ups overhead assigned to product C was?