13. During the last year, Moore Company's variable production costs totaled $10,000 and its fixed manufacturing overhead costs totaled P6,800. The company produced 5,000 units during the year and sold 4,600 units. There were no units in the beginning inventory. Which of the following statements is true?

a. The net income under absorption costing for the year will be P544 higher than net income under variable costing b. The net income under absorption costing for the year will be P544 lower than net income under variable costing c. The net income under absorption costing for the year will be P800 lower than net income under variable costing d. The net income under absorption costing for the year will be P800 higher than net income under variable costing

6. The basic assumption made in a variable costing system with respect to fixed costs is that all fixed costs are

a. Product costs b. Sunk costs c.Fixed as to the total cost d.Period costs

7. Which of the following does not appear on an income statement prepared using variable costing?

a.Manufacturing margin b.Fixed production costs c.Gross margin/profit d.Variable production costs