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Given Opening inventory of 2000 units and $25 unit variable and $5 unit fixed cost..
Budgeted and Actual data of
Production:
Production
units: 40,000 46,000
Sales
units: 38,000 46,000
Variable
cost: 1,800,000 2,070,000
Fixed
Overhead:. 300,000 318,000Given selling price of $72, prepare an actual Absorption costing statement based on Weighted Average inventory valuation.
My questions then:
1: How do I calculate the Overhead Absorption rate?
2: If asked to reconcile after preparing a Marginal costing statement, what OH absorption rate do I use?Hi – this doesnt seem like a CIMA P1 question so Im not really able to answer because its beyond the scope of my area.
CIMA wouldnt ask you to prepare a marginal costing statement in an objective test exam. Also there is no need to revisit calculations such as weighted average cost or Lifo FiFo in this syllabus.
Are you sure this was a P1 cima question? If so can you tell me the source?
Many Thanks
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