Question
Novak Ltd makes tennis shoes. Budgeted fixed manufactoring overhead for the period is $1,800,000, and 200,000 units are budgeted to be made. Novak Ltd did
Novak Ltd makes tennis shoes.
Budgeted fixed manufactoring overhead for the period is $1,800,000, and 200,000 units are budgeted to be made.
Novak Ltd did manufacture 200,000 units over the period, and sold 190,000 of them.
Variable costing profit for the period was $300,000.
The owner-manager, Novak Djoker, asks you what absorption costing profit would have been for the period. Assuming constant fixed overhead rates per unit across all relevant periods, the answer is:
A) $210,000 B) $300,000 C) $390,000 D) $480,000
PLEASE EXPLAIN HOW DID YOU get the answer
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started