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Marginal costing system

Forums › FIA Forums › MA1 Management Information Forums › Marginal costing system

  • This topic has 5 replies, 2 voices, and was last updated 9 years ago by Ken Garrett.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • March 23, 2016 at 6:14 pm #308003
    sabahatzain
    Member
    • Topics: 2
    • Replies: 4
    • ☆

    A company is preparing it cost budgets for the forthcoming financial year. Thr company produces a single product,which it is expecting to sell at $150 per unit. Based on annual sales and output of 2000 units, estimated costs are:
    $’000
    Direct material 41
    Direct wages 38
    Variable production overhead 37
    Fixed production overhead 40
    Variable selling overhead 10
    Fixed administration overhead 50
    Total 216
    If marginal costing is applied, what is the total contribution?
    A. $156000
    B. $174000
    C. $144000
    D. $84000

    March 24, 2016 at 1:49 pm #308105
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10587
    • ☆☆☆☆☆

    What’s your opinion on this?

    March 24, 2016 at 6:11 pm #308136
    sabahatzain
    Member
    • Topics: 2
    • Replies: 4
    • ☆

    How to solve this?

    March 26, 2016 at 4:50 pm #308350
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10587
    • ☆☆☆☆☆

    Yes. Give it a go.

    March 26, 2016 at 5:53 pm #308353
    sabahatzain
    Member
    • Topics: 2
    • Replies: 4
    • ☆

    I want solution

    March 27, 2016 at 6:58 pm #308417
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10587
    • ☆☆☆☆☆

    If you don’the try, I won’t.

    Goodbye.

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • The topic ‘Marginal costing system’ is closed to new replies.

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