Question
Secret Butcher is a frozen lamb manufacturer for wholesale customers in Malaysia. The following are the operating data in June 2020: Unit sold 120,000 Unit
Secret Butcher is a frozen lamb manufacturer for wholesale customers in Malaysia. The following are the operating data in June 2020:
Unit sold | 120,000 |
Unit produced | 130,000 |
Price per unit | RM30 |
Variable product cost per unit | RM10 |
Total fixed manufacturing overhead | RM130,000 |
Total fixed selling and administrative cost | RM360,000 |
What is the difference of net income between marginal and absorption costing method?
A. Marginal costing net income is RM10,000 higher than absorption costing.
B.Absorption costing net income is RM10,000 higher than marginal costing
C.There is no difference in net income between marginal and absorption costing
D.Absorption costing net income is RM130,000 higher than marginal costing
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