Question
ABC Ltd is a company engaged in the manufacturing and selling of metal cans .The following data provided below relate to ABC Ltd for the
ABC Ltd is a company engaged in the manufacturing and selling of metal cans .The following data provided below relate to ABC Ltd for the months October and November 2021. Variable Selling Overhead: 10% of sales value Normal Capacity was 11,000 units per month You are required to prepare the profit statements for the month of October and November 21 (a) Using marginal costing method . (7 marks) (b) Using absorption costing method . (7 marks) (c) Calculate the Over/under absorption of fixed cost production overhead .(5 marks) (d) Briefly explain why the profit per month varied under marginal and absorption costing method. (6 marks)
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