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sir if we are given sales and production in units plus oppening inventory n units how can we calculate profit in dollars using both absorption and marginal costing please explain?? and no other information is available except this how can we calcuate then??
thankyouIf there is no other information then you cannot calculate the profit. You need to know the sales price per unit and the costs per unit.
(If you are referring to one of the test questions at the end of the chapter in the course notes, then it does not ask you to actually calculate the profits).A company manufactures two products, X and Y, in a factory divided into two production cost centres, Primary and Finishing. The following budgeted data are available:
Cost centre Primary Finishing
Allocated and
Apportioned fixed $96,000 $82,500
Overheads costs.Direct labour mins per unit
Product X 36 25
Product Y 48 35Budgeted production is 6,000 units of product X and 7,500 units of product Y. Fixed overhead costs are to be absorbed on a direct labour hour basis.
What is the budgeted fixed overhead cost per unit for product Y?A $11
B $12
C $14
D $15These are the values that come under these cost centres:
Primary
96,000
36
48Finishing
82,500
25
35Please start a new thread when it is a new topic. This is not absorption and marginal costing!
Are there no answers in the book in which you found the questions? It is more sensible if you ask about whatever problem you have with the answer in the book, rather than just expect me to provide an answer!
The total time worked in the Primary cost centre is (6,000 x 36/60) + (7,500 x 48/60) = 9,600 hours.
So the absorption rate for the Primary cost centre is 96,000/9,600 = $10 per hour.In the same way you can calculate the absorption rate for the Finishing cost centre.
The cost per unit for product Y will be (48/60 hours x $10) + (35/60 hours x the absorption rate per hour for the finishing cost centre).
I do suggest that you watch the free lectures on Overheads. Our lectures are a complete course covering everything you need to be able to pass Paper F2 well.
Sorry for the inconvenience, I needed it’s solution. Thanks for the help. Could you please tell where I can find more questions like these.
There are questions at the end of each chapter of our free Lecture notes.
In addition there is an online test on this website – it selects 20 questions at random from a large bank of questions. So each time you attempt it you are likely to get different questions.However, you must buy a Revision Kit from one of the ACCA approved publishers. They contain lots of exam standard questions to practice on, and you really should not risk attempting the exam without having practiced every question in your Revision Kit.
I can’t find the online tests. Could u please paste the link to this test here. And I am using BPP revision kit but there aren’t a lot of questions in it.
https://opentuition.com/acca/f3/f3-revision-mock-exam/
(There really are more than enough questions in the BPP Kit 🙂 )
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