Question
Young Corporation has the following standard costs associated with the manufacture and sale of one of its products: Direct material P3.00 per unit Direct labor
Young Corporation has the following standard costs associated with the manufacture and sale of one of its products:
Direct material P3.00 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 0.25 per unit
Fixed SG&A expense P75,000 per year
During 2019, its first year of operations, Young manufactured 51,000 units and sold 48,000. The selling price per unit was P25. All costs were equal to standard.
My questions:
- Under absorption costing, the standard production cost per unit for 2019 was?
- Under variable costing, the standard production cost per unit for 2001 was?
- Based on variable costing, the income before income taxes for the year was?
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