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?

562,500

456,500

232,500

None of the above

482,500

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:

P93,000

P91,500

P90,000

P61,000

None of the above