Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hamov Torter makes cakes, for which the budgeted costs and profit per unit is as follows: $ Materials 2 Labour 3 Variable production overheads 3

Hamov Torter makes cakes, for which the budgeted costs and profit per unit is as follows:

$
Materials 2
Labour 3
Variable production overheads 3
Fixed production overheads 4
Viariable selling cost 1
Fexed selling overhead 2
Profit 5
Selling price 20

Both types of fixed overheads were based on budget of 10,000 cakes a year In the fist year of production, the only difference from the budget was that 11,000 cakes were produced, and 9,000 sold. All costs and revenues are in line with budged per unit. Calculate the profit made under absorption costing system

a.

$ 47,000

b.$ 12,000

c.

$ 1,000

d.

$ 12

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Financial Accounting

Authors: Anne Marie Ward, Andrew Thomas

9th Edition

1526803003, 978-1526803009

More Books

Students also viewed these Accounting questions

Question

Do not come to the conclusion too quickly

Answered: 1 week ago

Question

Engage everyone in the dialogue

Answered: 1 week ago