PROBLEM 1 Ollie's Olive Oil began business in 2022, during which it produced 104,000 quarts of olive oil. In 2022, the company sold 100,000 quarts of olive oil. Cost incurred during the year were as follows: Ingredients used P228,800 Direct labor 104,000 Variable overhead 197,600 Fixed overhead 98.800 Variable selling expenses 50.000 Fixed selling and administrative expenses 120,000 Total actual cost P799200 REQUIRED: For each of the independent cases: Production| Sales 104,000 | 100,000 104,000 |105.000 104,000 104,000 1. What was the actual production cost per quart under variable costing? Under absorption costing? What was variable cost of goods sold for 2022 under variable costing? What was cost of goods sold for 2022 under absorption costing? What was the value of ending inventory under variable costing? Under absorption costing? How much fixed overhead was charged to expense in 2022 under variable costing? Under absorption costing? F-"F'P'!" PROBLEM 2 Dexter Corporation produces and sells a single product, a wooden hand loom for weaving small items such as scarves. Selected cost and operating data relating to the product for two years are given below: Selling price per unit P 50 Manufacturing costs: Variable per unit produced: Direct materials 11 Direct labor 6 Variable overhead 3 Fixed per year 120,000 Selling and administrative costs: Variable per unit sold 4 Fixed per year ?0,000 Year 1 Year 2 Units in beginning inventory - 2,000 Units produced during the year 10,000 6,000 Units sold during the year 8,000 8,000 Units in ending inventory 2,000 - REQUIRED: '1. Assume the company uses absorption costing. a. Compute the unit product cost in each year. b. Compute the ending inventory balance each year. c. Compute the costs of goods sold each year. d. Prepare an income statementtor each year. 2. Assume the company uses variable costing a. Compute the unit product cost in each year. b. Compute the ending inventory balance each year. c. Compute the costs of goods sold each year. d. Prepare an income statement for each year. 3. Reconcile the variable costing and absorption costing net operating incomes