Please help me with the following question, i can’t get the answer.
$ per unit
Direct materials 8.00
Direct labour 8.50
Variable overhead 3.50
Fixed overhead absorption rate 4.00
Selling price 35:00
Information at the month end;
Budgeted production for the month 4000
Actual production for the month 6,500
Actual sales for the month 8,100
Fixed overhead costs $30,000
All other unit costs and revenues were as budgeted.
Find the marginal costing profit and absorption costing profit for the month.
Do you mean that fixed overhead per UNIT is 4.00? If not, and 4.00 is an absorption RATE per hour (for example) you need to specify how many hours direct labour each unit requires.
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