Maurice Tutor

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Category > Accounting Posted 23 Jul 2017 My Price 8.00

marginal costing

A company produces and sells one type of product. The details for last year were as follows:

Production and sales

 

Budget

Actual

Production (units)

25,000

22,000

Sales (units)

23,000

20,000

There was no inventory at the start of the year.

Selling price and costs

 

Budget $

Actual $

Selling price per unit

70

70

Variable costs per unit

55

55

Fixed production overhead

130,000

118,000

Fixed selling costs

75,000

75,000

Calculate the actual profit for the year that would be reported using:

(i) marginal costing;

(ii) absorption costing.

Answers

Maurice Tutor
(5)
Status NEW Posted 23 Jul 2017 09:07 PM My Price 8.00

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