Of the 12,000 units produced by Ube Company during January, 10,000 units were sold at P50 per

unit.

Production costs during the month were:

Materials, P80,000

Direct Labor, P100,000

Factory Overhead - Fixed, P60,000

Factory Overhear - variable, P72,000

General and administrative expenses , all fixed, P120,000

Required:

a. What is the operating income for January under absorption costing

b. What is the operating income for January under variable costing