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The data below relate to a firm which makes and sells a toy product. Sales Production March Units 4,000 8,000 $ 80 April Units 6,000
The data below relate to a firm which makes and sells a toy product. Sales Production March Units 4,000 8,000 $ 80 April Units 6,000 2,000 $ 80 40 96,000 12 40 Selling price per unit Variable production costs, per unit Fixed production overhead incurred Fixed production overhead cost, per unit, being the predetermined overhead allocation rate Selling , distribution and administration costs (all fixed) 96.000 12 40,000 40,000 The budgeted production volume is 8.000 units per month You are required to present a comparative statement of profit for each month using (a) Absorption costing (6) Marginal costing (9 + 7 = 16 marks)
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