Use the information to answer questions 6-15

A company manufactures a single product for which the following data based on a budgeted capacity of 80,000 units per month, are as follows:

Stock, output and sales data (in units)

Details	January
Sales	72,000
Closing stock	2,000
Production	70,000

Cost Data Per unit

Details	$
Direct materials	10
Direct labour	15
Variable Production overheads	25
Fixed Production overheads	30

Fixed administrative and selling overheads were estimated at $350,000 and $250,000 respectively. During the month, the company sold one unit of its product for $200.

Marginal Cost per unit is:

a.

$80

b.

$35

c.

$50

d.

$25

Clear my choice

Question 7

Answer saved

Marked out of 1.00

Flag question

Question text

Full Cost per unit is:

a.

$50

b.

$80

c.

$35

d.

$25

Clear my choice

Question 8

Answer saved

Marked out of 1.00

Flag question

Question text

Opening stock in units is:

a.

2,000 units

b.

8,000 units

c.

6,000 units

d.

4,000 units

Clear my choice

Question 9

Not yet answered

Marked out of 1.00

Flag question

Question text

Total Contribution is:

a.

$10,200,000

b.

$10,800,000

c.

$3,600,000

d.

$3,700,000

Clear my choice

Question 10

Not yet answered

Marked out of 1.00

Flag question

Question text

Profit as per Marginal Costing statement is:

a.

$10,200,000

b.

$7,740,000

c.

$7,800,000

d.

$10,800,000

Clear my choice

Question 11

Not yet answered

Marked out of 1.00

Flag question

Question text

Unadjusted cost of sales is:

a.

$5,760,000

b.

$5,920,000

c.

$3,600,000

d.

$3,700,000

Clear my choice

Question 12

Not yet answered

Marked out of 1.00

Flag question

Question text

Fixed production overheads were:

a.

Under-Absorbed by $500,000

b.

Over-Absorbed by $500,000

c.

Over-Absorbed by $300,000

d.

Under-Absorbed by $300,000

Clear my choice

Question 13

Not yet answered

Marked out of 1.00

Flag question

Question text

Gross Profit using Absorption costing is:

a.

$10,800,000

b.

$8,340,000

c.

$6,060,000

d.

$5,760,000

Clear my choice

Question 14

Not yet answered

Marked out of 1.00

Flag question

Question text

The net profit using Absorption Costing is:

a.

$7,990,000

b.

$7,800,000

c.

$4,740,000

d.

$7,740,000