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Summer Corporation has the following standard costs associated with the manufacture and sale of one of its products: Direct material P300 per unit Direct labor
Summer Corporation has the following standard costs associated with the manufacture and sale of one of its products: Direct material P300 per unit Direct labor 2.50 per unit Variable manufacturing overhead 1.80 per unit Fixed manufacturing overhead 4.00 per unit (based on an estimate of 50,000 units per year) Variable selling expenses .25 per unit Fixed SG&A expense P75,000 per year During its first year of operations Summer manufactured 51,000 units and sold 48,000. The selling price per unit was P25. All costs were equal to standard. Based on variable costing, the income before income taxes for the year was O P560,000. 0 P547500. 0 PS70,600. O P562,600
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