Selected data concerning the operations of Kern Company for the year ended December 31, 2018, is...

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Selected data concerning the operations of Kern Company for the year ended December 31, 2018, is available as follows: Units produced..... 10,000 Units sold....... 9,000 Direct materials used............ .P40,000 .P20,000 .P25,000 Direct labor incurred.......... Fixed factory overhead........... Variable factory overhead.....P12,000 Fixed selling and administrative exp..P30,000 Variable selling and administrative.......P4,500 Finished goods inventory, beg ..none 5. Which costing method, absorption or variable, would show higher operating income and by what amount? a. Absorption costing P2,500 b. Variable costing $2,500 c. Absorption costing P5,500 d. Variable costing #5,500 Selected data concerning the operations of Kern Company for the year ended December 31, 2018, is available as follows: Units produced..... 10,000 Units sold....... 9,000 Direct materials used............ .P40,000 .P20,000 .P25,000 Direct labor incurred.......... Fixed factory overhead........... Variable factory overhead.....P12,000 Fixed selling and administrative exp..P30,000 Variable selling and administrative.......P4,500 Finished goods inventory, beg ..none 5. Which costing method, absorption or variable, would show higher operating income and by what amount? a. Absorption costing P2,500 b. Variable costing $2,500 c. Absorption costing P5,500 d. Variable costing #5,500