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Maximum productive capacity 24,000 units per year
Normal capacity 20,000 units
Standard variable manufacturing costs per unit 10
Fixed factory overhead 40,000
Variable selling expenses per unit 4
Fixed selling expenses 30,000
Unit sales price 20
2019 operating results
Sales 19,000 units
Production 19,200 units
Net unfavorable variance standard variable manufacturing costs per unit 10, 000
REQUIRE
1. Income under both costing methods
2. Break even point
3. Margin of safety for 2013
4. Required sales to earn after tax profit of 140,000 (tax rate is 30%)
5. Required sales in peso to earn profit of 10% of sales.
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