Excellent Writer produces and sell boxes of signing pens for P1,000 per box. Direct materials are P400 per box and direct manufacturing labor averages P75 per box. Variable overhead is P25 per box and fixed overhead is P12,500,000 per year. Administrative expenses, all fixed, run P4,500,000 per year, with sales commissions of P100 per box. Production is expected to be 100,000, which is met every year. For the year just ended, 75,000 boxes were sold.

Requirement

 What is the inventoriable cost per box using variable costing?

Answer rating: 100% (QA)

In variable costing only variable manufacturing costs are considere... View the full answer