ABC Company manufactures a single product, the claud. The following budgeted figures relate to the claud for
Question:
ABC Company manufactures a single product, the claud. The following budgeted figures relate to the claud for a one year period.
Sales & productions (units) 1,600
Sales $32,000
Productions costs:
variable $12,800
fixed $3,200
Sales & distribution costs:
Variable $6,400
fixed $4,800
Fixed are incurred evenly throughout the year, and actual fixed costs are the same as budgeted . Actual variable costs per unit are also the same as budgeted. All of the variable production costs are direct costs. There were no inventories of claud at the beginning of the year. In the first quarter 440 units were produced and 320 units sold
Calculate the fixed production costs absorbed by Claud in the first quarter if absorption costing is used.
Calculate the under/over recovery of overheads during the quarter.
Calculate the profit using absorption costing.
Calculate the profit using marginal costing.
Frank Woods Business Accounting Volume 2
ISBN: 9780273693109
10th Edition
Authors: Frank Wood, Alan Sangster