UTEX Company has presented to you the following production data. Sales price per yard is P100.00.

201820192020

Units sold (inyard)24,00024,50026 000

Units produced (in yard)25,00024,50027,000

Standard manufacturing cost per yard:

VariableCost

DirectMaterialsP24.00

DirectLabor16.00

Factoryoverhead10.00

Fixed Factory Overhead15.00

During 2019, the company did not report any capacity variance. Selling, general and administrative expenses vary at the rate of P2.00 per unit while the fixed portion is determined to be P60,000 per annum.

There was no work-in-process inventory on hand at January 1, 2018 - December 31, 2020. Finished goods inventories are maintained on a first-in-first out basis. Ignore income tax in the computation.

What is the net Income (loss) under variable costing in 2018?

a.P772,500

b.P724,500

c.P748,500

d.P724,000

If the company classifies direct materials as a throughput cost, what is the net income (loss) under throughput costing in 2020?

a.P820,500

b.P794,500

c.P748,500

d.P724,500

What is the amount of capacity or volume variance under variable costing in 2020?

a.P7,500- fav

b.P0

c.P7,500- unf.

d.P 500- fav