The following information has been extracted from the financial records of LAC Corporation for its first year of operations:

Units produced: 10,000

Units sold: 7,500

Variable costs per unit:

Direct material P8

Direct labor 9

Mfg. overhead 3

SG&A 4

Fixed costs:

Manufacturing overhead P60,000

SG&A 30,000

Required:

a. Based on absorption costing, what amount of period costs will LAC Corporation deduct?

b. Based on absorption costing, the Cost of Goods Manufactured for LAC Corporation's first year would be

c. LAC Corporation's absorption costing income in its first year of operations will be higher than the net income under variable costing by how much?