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Judges Company Last year, Judges Company manufactured 17,000 units and sold 13,000 units. Production costs for the year were as follows: Direct materials.......... P153,000 Direct
Judges Company Last year, Judges Company manufactured 17,000 units and sold 13,000 units. Production costs for the year were as follows: Direct materials.......... P153,000 Direct labor......... 110,500 Variable manufacturing overhead....... 204,000 Fixed manufacturing overhead.......... 255,000 Sales were P780,000 for the year, variable selling and administrative expenses were P88,400, and fixed selling and administrative expenses were P170,000. There was no beginning inventory. Assume that direct labor is a variable cost. Refer to Judges Company. The contribution margin per unit was: a. P17.50. c. P27.30. b. P32.50. d. P25.70. Refer to Judges Company. Under absorption costing, the carrying value on the balance sheet of the ending inventory for the year would be: a. P190,800. c. P230,800. b. P170,000. d. P0. Refer to Judges Company. Under variable costing, the company's net income for the year would be: a. P60,000 higher than under absorption costing. P108,000 higher than under absorption costing. P108,000 lower than under absorption costing. d. P60,000 lower than under absorption costing. Variable costing can be used for internal purposes, along with any of the following system, except: a. Actual costing system. b. Normal costing system. c. Standard costing system. d. Absorption costing system. Variable costing lends its concepts and procedures to which of the following systems: a. Absorption costing. b. Financial statement analysis. c. Cost-volume profit analysis. d. Economic analysis
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