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Hi
Can somebody help me to solve the answer?
Question.
Company X used absorption costing and absorbs overheads on a per unit basis.
In the last period when company X sold 19800 units, budgeted production overheads were £170000 and there was an under absorption of £ 10000. Opening inventory was 1300 units and closing inventory was 1500 units. What was the overhead absorption rate used by company XChoose the right option.
Option A- 8.08
Option B- 8
Option C- 8.50
Option D- 9Hi there,
Thank you for your question but unfortunately as tutors we can not answer test-type questions such as this ( we dont want to be providing a service where we simply answer homework for students).We are always happy to help, but this tutor forum operates best when you post the answer from which ever source you obtained the question above- then you explain why you disagree or dont understand the answer provided to you, so that the Open Tuition tutors can help to resolve your particular aspect of misunderstanding.
Please reply to this post with the answer to the question above and let me know some more detail as to why it is causing you doubt.
Thanks
Cath
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