Use the following information for the next four (4) questions: White Company manufactures a single product and has the following structure: Selling price Variable costs per unit Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative P 420 P 72 96 24 48 P 2,400,000 1,400,000 The company produces 24,000 units each month and 23,600 units are sold in a month. 16) By how much is income under variable costing higher or lower than absorption? A. Higher by P40,000 C. B. Lower by P40,000 D. Higher by P59,200 Lower by P59,200 17) What is the net income under absorption costing? A. 448,000 B. 488,000 C. 428,800 D. 408,000 Use the following information for the next two (2) questions: Damit Company manufactures and sells a single product. Planned and actual production in its first operation was P90,000 units. Planned and actual costs for the year were as follows: Variable Fixed Manufacturing 540,000 360,000 Non manufacturing 450,000 270,000 The company sold 76,500 units for P20 each. 18) Determine the profit using absorption costing A. (9,000) B. 45,000 19) Determine the profit using variable costing A. (9,000) B. 45,000 C. 58,500 D. 112,500 C. 58,500 D. 112,500 20) During its first year of operations, Wise Company produced 275,000 units and sold 250,000 units. The following costs were incurred the year: Variable costs per unit Direct materials Direct labor Manufacturing overhead Selling and administrative P 15.00 10.00 12.50 2.50 Total fixed cost Manufacturing overhead Selling and administrative P 2,200,000 1,375,000 What is the difference between operating profit calculated on the absorption costing basis and on the variable costing basis, is that absorption costing operating profit? A. 200,000 greater B. 220,000 greater C. 325,000 greater D. 62,500 less For P1,000 per box, Sisi, Inc. produces and sells delicacies. Direct materials are P400 per box and direct manufacturing labor averages P75 per box. Variable overhead is P25 per box and fixed overhead cost is P12,500,000 per year. Administrative expenses, all fixed, run P4,500,000 per year, with sales commissions of P100 per box. Production is expected to be 100,000 boxes, which is met every year. For the year just ended, 75,000 boxes were sold. 1) What is the inventoriable cost per box using absorption costing? A. 500 B. 625 C.670 D. 770 2) What is the inventoriable cost per box using variable costing? A.770 B.670 C.625 D. 500 Huns Company's 2021 fixed manufacturing overhead costs totaled P120,000 and variable selling costs totaled P45,000. 3) Under variable costing, how much of the costs are product costs? B. 45,000 C. 120,000 D. 165,000 D. 165,000 A. -0- 4) Under absorption costing, how much of the costs are period costs? A. -0- B. 45,000 C. 120,000 Gloc Company produces and sells delicacies. Direct materials regarding production amounted to P240 per unit. Direct labor was estimated to be P45 per unit and variable manufacturing expenses are expected to be P15 per unit. Fixed factory overhead amounted to a total of P5,000,000. Fixed administrative expenses amounted to a total of P1,800,000 per year with sales commissions of P60 per unit. For the year just ended, out of the 100,000 produced, only 60,000 units were sold 5) Determine the inventoriable cost per unit using absorption costing A. 300 B. 350 B. 350 C.368 D. 383 6) Determine the inventoriable cost per unit using variable costing A. 300 C. 368 D. 383 Penny Company manufactures and sells a single product. Planned and actual production in its first year of operation was 100,000 units. Planned and actual costs for that year were as follows: Non manufacturing Variable Fixed Manufacturing P600,000 P400,000 The company sold 85,000 units of product at a selling price of P30 per unit. 7) Using absorption costing, the company's operating profit was A. 750,000 B. 900,000 B. 840,000 8) Using variable costing, the A. 750,000 C. 975,000 D. 1,020,000 company's operation profit was C. 915,000 D.975,00 P500,000 P300,000