This topic contains 1 reply, has 2 voices, and was last updated by 
Kim Smith 1 year, 5 months ago.
- Posts
- July 1, 2018 at 10:30 am
Dear Sir,
Please help me with the following question, i can’t get the answer.
Ques:
$ per unit
Direct materials 8.00
Direct labour 8.50
Variable overhead 3.50
Fixed overhead absorption rate 4.00Profit 11:00
Selling price 35:00Information at the month end;
units
Budgeted production for the month 4000
Actual production for the month 6,500
Actual sales for the month 8,100Fixed 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.
July 2, 2018 at 4:38 pmDo 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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