Question
1.mike Ltd makes a profit of $500,000, calculated under variable costing.mike has a constant fixed manufacturing cost per unit of $70, with both opening and
1.mike Ltd makes a profit of $500,000, calculated under variable costing.mike has a constant fixed manufacturing cost per unit of $70, with both opening and closing inventory being 1,000 units. What is the profit calculated using absorption costing?
Select one:
$430,000
$570,000
$600,000
$500,000
2.Rocky Ltd makes a profit of $200,000, calculated under variable costing.Rocky has a constant fixed manufacturing cost per unit of $4, opening inventory of 5,000 units and closing inventory of 4,000 units. What is the profit calculated using absorption costing?
Select one:
$200,000
$204,000
$196,000
$210,000
3.calculate the direct labour rate variance:
Direct labour cost standard: 5 hours @ $7.50 per hour
Actual results:
7800 units were produced.
Direct labour40 100 hours @ $7.30 = $292 730
Select one:
$8020 (F)
$8250 (F)
$8000 (U)
$8010(F)
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