Forums › FIA Forums › MA1 Management Information Forums › Marginal costing system
- This topic has 5 replies, 2 voices, and was last updated 8 years ago by Ken Garrett.
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- March 23, 2016 at 6:14 pm #308003
A company is preparing it cost budgets for the forthcoming financial year. Thr company produces a single product,which it is expecting to sell at $150 per unit. Based on annual sales and output of 2000 units, estimated costs are:
$’000
Direct material 41
Direct wages 38
Variable production overhead 37
Fixed production overhead 40
Variable selling overhead 10
Fixed administration overhead 50
Total 216
If marginal costing is applied, what is the total contribution?
A. $156000
B. $174000
C. $144000
D. $84000March 24, 2016 at 1:49 pm #308105What’s your opinion on this?
March 24, 2016 at 6:11 pm #308136How to solve this?
March 26, 2016 at 4:50 pm #308350Yes. Give it a go.
March 26, 2016 at 5:53 pm #308353I want solution
March 27, 2016 at 6:58 pm #308417If you don’the try, I won’t.
Goodbye.
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