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A company has the following budgeted costs and revenues: N$ per unit Sales 50 Variable production cost 18 Fixed production cost 10 In the most
A company has the following budgeted costs and revenues: N$ per unit Sales 50 Variable production cost 18 Fixed production cost 10 In the most recent period, 2 000 units were produced and 1 000 units were sold. Actual sales price, variable production cost per unit and total fixed production costs were all as budgeted. Fixed production costs were over-absorbed by N$4 000. There was no opening inventory for the period. What would be the reduction in profit for the period if the company has used marginal costing rather than absorption costing
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