A company makes and sells one product.The price is$50 per unit .The cost
card is:
$
Direct material 22.00
Direct labour 5.50
Direct expenses 0.50
Overheads 15.00
Total unit cost 43.00
60% of overheads are fixed,the remainder are variable overheads.During September,10 000 units were sold.
What was the contribution for September?
Ask the Tutor ACCA MA
Marginal and Absorption Costing
6y ago#1Please do not simply type out a test question and expect me to provide an answer. You must have an answer in the same book in which you found the question, so ask about whatever it is in the answer that you are not clear about and then I will explain.
I assume that you have watched my free lectures? The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
It says that the total 60% of overhead cost is fixed so the that. fixed 60%=9 and variable is 40%=6 so the total cost per unit under marginal costing is (22+5.50+0.50+6=34 now we less the selling price per unit which is 43 so that 43-34=9 so now we can find contribution (9*10000=90000)
sir please tell me is i am right
5y ago#3You are correct :-)
Thank a lot sir
You are doing very great job
i have no worlds to thank you
5y ago#5Thank you for your comment :-)
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