Solution to exercises and problems in MAS by Roque

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