Cost and selling price details for unit of product Q are as follows ($ per unit):

Direct material $4.20

Direct labour $3.00

Variable overhead $ 1.00

Fixed overhead $2.80

Profit $4.00

Selling price $15.00

Budgeted production for month 10,000 units

Actual production for month 12,000 units

Actual sales for month 11,200 units

Actual fixed overhead cost incurred during month $31,000

Based on the above data, the absorption costing profit for the month is....

a.

$44,800

b.

$42,200

c.

$45,160

d.

$47,400

Last month a manufacturing company's profit was $2,000, calculated using absorption costing principles. If marginal costing principles had been used, a loss of $3,000 would have occurred. The company's fixed production cost is $2 per unit. Sales last month were 10,000 units.

What was last month's production (in units)?

a.

10,500

b.

12,500

c.

9,500

d.

7,500

Cost and selling price details for unit of product Q are as follows ($ per unit):

Direct material $4.20

Direct labour $3.00

Variable overhead $ 1.00

Fixed overhead $2.80

Profit $4.00

Selling price $15.00

Budgeted production for month 10,000 units

Actual production for month 12,000 units

Actual sales for month 11,200 units

Actual fixed overhead cost incurred during month $31,000

Based on the above data, the marginal costing profit for the month is...

a.

$76,160

b.

$45,160

c.

$50,600

d.

$44,800

The budget for Bright's first month of trading, producing and selling boats was as follows:

The budget for Bright's first month of trading, producing and selling boats was as follows:

	$000
Variable production cost of boats	45
Fixed production costs	30
Production costs of 750 boats	75
Closing inventory of 250 boats	(25)
Production cost of 500 sold	50
Variable selling costs	5
Fixed selling costs	25
	80
Profit	10
Sales revenue	90

The budget has been produced using an absorption costing system.

If a marginal costing system were used, the budgeted profit would be:

a.

$10,000 higher

b.

$22,500 lower

c.

$22,500 higher

d.

$10,000 lower