Absorption or Full or GAAP costing

Variable costing or CM approach or Direct Costing Approach

The only difference between AC and VC is the treatment of Fixed OH. Under AC,
product cost. Under VC, period cost.

Problem No. 1
1. 224K
2. 212K

Problem No. 2
1. 26 per unit
2. 33 per unit
3.
a. 260K
b. 225K
c. 155K

Absorption Costing - 4 product costs; DM, DL, VOH, FOH

Variable Costing - 3 product costs; DM, DL, VOH, FOH
Throughput Costing - 1 product cost; DM

Problem No. 3
1. 20K
2. 140K
3. 10K

Problem No. 4 - Refer to Screenshots

We only compute variance for product costs.

Problem No. 5
1. 25K

Problem No. 6
1. 3,600 ; 3150
2. 34,950

Use the actual Fixed Costs computing VC net income.

MCQ
1. A
2. B
3. C
4. A
5. B
6. B
7. C
8. B
9. A
10. D
11. D
12. D
13. D
14. A
15. B
16. A
17. C
18. B
19. A
20. B
21. A
22. A
23. A
24. A
25. D
26. C
27. A
28. C
29. D
30. C