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31.  Warmuplang Corporation showed the following costs for 2020   Warehouse depreciation                            P  300,000   Salaries of warehouse supervisor                  200,000   Increase in RM inventory                                 20,000                              Direct material purchases                              120,000   Direct labor costs incurred                             180,000   Variable selling costs                                       80,000 QUESTION: if the company produced and sold 100,000 and 90,000 units, respectively during 2020. How much would be the difference in net income under absorption and variable costing?

31.  Warmuplang Corporation showed the following costs for 2020   Warehouse depreciation                            P  300,000   Salaries of warehouse supervisor                  200,000   Increase in RM inventory                                 20,000                              Direct material purchases                              120,000   Direct labor costs incurred                             180,000   Variable selling costs                                       80,000 QUESTION: if the company produced and sold 100,000 and 90,000 units, respectively during 2020. How much would be the difference in net income under absorption and variable costing?

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter12: Activity-based Management
Section: Chapter Questions
Problem 19E: A company is spending 70,000 per year for inspecting, 60,000 per year for purchasing, and 56,000 per...
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31. 

Warmuplang Corporation showed the following costs for 2020

  Warehouse depreciation                            P  300,000
  Salaries of warehouse supervisor                  200,000
  Increase in RM inventory                                 20,000                           
  Direct material purchases                              120,000
  Direct labor costs incurred                             180,000
  Variable selling costs                                       80,000

QUESTION: if the company produced and sold 100,000 and 90,000 units, respectively during 2020. How much would be the difference in net income under absorption and variable costing?

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