Under absorption costing, how much of the costs are period costs?
Group of answer choices
None
Php120,000
Php165,000
Php45,000
62. C2 Company had sales of Php576,000 and variable costs of Php324,000. Fixed costs amount to Php96,000 from an expected production of 7,200 units.
If the company expects to increase its sales by 960 units by incurring an additional Php24,000 for advertising expense, what will happen to profit?
Group of answer choices
Increase of Php33,600
Decrease of Php33,600
Decrease of Php9,600
Increase of Php9,600
Question 63 2 pts
A company sells two products, A and B. The sales mix consists of a composite unit of 2 units of A for every 5 units of Y (2:5) Fixed costs are Php247,500. The unit contribution margins for A and B are, Php12.50 and Php6.00, respectively.
Considering the company as a whole, the number of composite units to breakeven is
Group of answer choices
22,500 composite units
4,500 composite units
8,250 composite units
1,650 composite units
Question 64 2 pts
ABC Company produces a single product. Last year, ABC manufactured 17,000 units and sold 13,000 units. Production costs for the year were as follows:
Direct materials
Php153,000
Direct labor
110,500
Variable manufacturing overhead
204,000
Fixed manufacturing overhead
255,000
Sales were Php780,000 for the year, variable selling and administrative expenses were Php88,400, and fixed selling and administrative expenses were Php170,000. There was no beginning inventory. Assume that direct labor is a variable cost.
The contribution margin per unit was:
Group of answer choices
Php25.70
Php32.50
Php27.30
Php17.50
Answer & Explanation
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