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A company manufactures a single product which it sells for $35 per unit. The planned output for 20X6 was 6,000 units. The unit product cost
A company manufactures a single product which it sells for $35 per unit. The planned output for 20X6 was 6,000 units. The unit product cost comprises: $ Direct Labour 8.50 Direct Material 2.50 Variable overhead 1.5 hours x $2.50/hour 3.75 Fixed overhead 1.5 hours x $8.00/hour 12.00 26.75 What would be the budgeted profit for the year based on the marginal costing approach (assuming production is 6,000 units and closing inventory is 360 units)? a. $42,210 b. $108,900 O c. $150,870 O d. $72,680
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