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Solution to Absorption Costing and Variable Costing
Solutionto
Absorption Costingand
Variable Costing
Ex. 7-1
a. Absorption Costing b. Variable Costing;Materials P 20 Materials P 20Labor 10 Labor 10Variable overhead 12 Variable overhead 12Fixed overhead 13Product Cost P 55 Product Cost P 42
Ex. 7-2. Computation of Product Coat per Unit:
D J .Selling price P 110 P 150Less contribution margin 60 80Variable Cost P 50 P 70 Less Var. selling & administrative cost 10 15Variable manufacturing cost or product cost under variable costing P 40 P 55Add fixed overhead 10 20Product cost under absorption costing P 50 P 75
