Black Widow Company had the following costs for 2020: Raw materialsP700,000Direct laborP100,000Miscellaneous FOHP80,000Depreciation on machinesP40,000Rent for the factory buildingP50,000Rent for dales officeP30,000Depreciation on store equipmentP20,000How much of those costs should be inventoried under absorption (A) and variable (V) costing methods?Select one:a. (A) P970,000; (V) P800,000b. (A) P1,000,000; (V) P880,000c. (A) P1,020,000; (V) P880,000d. (A) P930,000; (V) P800,000

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Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter5: Activity-based Costing And Management

Section: Chapter Questions

Problem 16MCQ: Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000...

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Black Widow Company had the following costs for 2020:

Raw materials	P700,000
Direct labor	P100,000
Miscellaneous FOH	P80,000
Depreciation on machines	P40,000
Rent for the factory building	P50,000
Rent for dales office	P30,000
Depreciation on store equipment	P20,000

How much of those costs should be inventoried under absorption (A) and variable (V) costing methods?

Select one:

a. (A) P970,000; (V) P800,000

b. (A) P1,000,000; (V) P880,000

c. (A) P1,020,000; (V) P880,000

d. (A) P930,000; (V) P800,000

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