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Itzy Corporation provides the following information for the month of February based on the production of 20,000 units: Direct materials P 50,000 Direct labor 30,000 Variable factory overhead costs 20,000 Fixed factory overhead costs 25,000 Variable selling and administrative expenses 40,000 Fixed selling and administrative expenses 15,000 What selling price will earn a gross profit of P 2.50 per unit under absorption costing? O P 10.50 O P3.75 O P8.75 O P9.50

Itzy Corporation provides the following information for the month of February based on the production of 20,000 units: Direct materials P 50,000 Direct labor 30,000 Variable factory overhead costs 20,000 Fixed factory overhead costs 25,000 Variable selling and administrative expenses 40,000 Fixed selling and administrative expenses 15,000 What selling price will earn a gross profit of P 2.50 per unit under absorption costing? O P 10.50 O P3.75 O P8.75 O P9.50

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...
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What selling price will earn a gross profit of P 2.50 per unit under absorption costing?

Itzy Corporation provides the following information for the month of February based on the production of 20,000 units: Direct materials P 50,000 Direct labor 30,000 Variable factory overhead costs 20,000 Fixed factory overhead costs 25,000 Variable selling and administrative expenses 40,000 Fixed selling and administrative expenses 15,000 What selling price will earn a gross profit of P 2.50 per unit under absorption costing? P 10.50 O P3.75 O P8.75 O P9.50
Transcribed Image Text:Itzy Corporation provides the following information for the month of February based on the production of 20,000 units: Direct materials P 50,000 Direct labor 30,000 Variable factory overhead costs 20,000 Fixed factory overhead costs 25,000 Variable selling and administrative expenses 40,000 Fixed selling and administrative expenses 15,000 What selling price will earn a gross profit of P 2.50 per unit under absorption costing? P 10.50 O P3.75 O P8.75 O P9.50
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