VACUNA CORP. makes a single product that sells for P50.

VACUNA made the following standard:

The standard variable manufacturing cost is P32.50

The standard fixed manufacturing cost is P7.50, based on the budgeted

production of 20,000 units.

During the year VACUNA produced 22,000 units and sold 21,000 units.

Actual costs were:

Actual fixed manufacturing costs were P157,000;

Actual variable manufacturing costs were P735,000.

Selling and administrative expenses, all fixed, were P75,000.

There were no beginning inventories.

REQUIRED:

A. Make a standard absorption costing income statement.

B. Make a standard variable costing income statement.

C. Determine the break even point based on:

1.Budgeted production

2.Actual operation

D. What is the margin of safety ratio on actual operation.

Answer rating: 100% (QA)

Lets tackle each requirement step by step A Standard Absorption Costing Income Statement 1 Sales Revenue Units sold 21000 Selling price per unit P50 T... View the full answer