Wood N' Metal Company has organized a new division to manufacture and sell specially designed tables for mounting and using personal computers. Its new plant is highly automated and requires high monthly fixed costs as shown below.

Manufacturing costs:

Variable costs per unit:

Direct materials P50

Direct labor 36

Overhead 4

Fixed overhead 240,000

Selling and administrative costs:

Variable 12% of sales

Fixed 160,000

During the month of operations, the following activity was recorded:

Units produced 5,500

Units sold 5,200

Selling price per unit P300

Net materials variance-unfavorable 12,000

Net direct labor variance-favorable 5,000

Net variable overhead variance-favorable 2,500

The company has a normal capacity of 6,000 units

Required:

1. Unit inventoriable costs under absorption costing and variable costing.
2. Calculate the volume variance.
3. Cost of goods sold at actual under absorption costing and variable costing.
4. Operating income under absorption costing and variable costing.
5. Reconciliation of income under absorption costing and variable costing.