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marginal costing The following data concerns the output of Manchester Ltd over a two-year period: Opening stock Sales Production 2009 units 40 000 225 000

marginal costing
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The following data concerns the output of Manchester Ltd over a two-year period: Opening stock Sales Production 2009 units 40 000 225 000 240 000 2010 units 55 000 210 000 190 000 The Production of 250,000 units per annum is considered to be the normal activity level of the company. Fixed production overhead is budgeted to be $500,000 per year. The company has estimated its total cost per unit for both years as follows: Direct materials $2.00 Direct wages $3.00 Variable overheads $1.00 Fixed overheads $2.00 $8.00 Selling price is $20. Fixed Selling and administration overheads incurred were $190,000 for the year and budgeted fixed overhead was as planned. Prepare Marginal and Absorption costing statements for both years to determine the profit or loss for each period and reconcile the profits

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