9.A manufacturing company that produces a single product has provided the following data concerning its...

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Accounting

9.A manufacturing company that produces a single product has

provided the following data concerning its most recent month of

operations:

Selling price ................. P135

Units in beginning inventory .. 0

Units produced ................ 6,400

Units sold .................... 6,200

Units in ending inventory ..... 200

Variable costs per unit:

Direct materials .............. P49

Direct labor .................. P38

Variable manufacturing overhead P6

Variable selling and administrative P11

Fixed costs:

Fixed manufacturing overhead .. P108,800

Fixed selling and administrative P74,400

Page 7 of 11

M.S.M.C.

The total contribution margin for the month under the variable

costing approach is:

A) P155,000

B) P260,400

C) P192,200

D) P83,400

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