Ask Experts Questions for FREE Help !
Ask
    A.Mustafa's Avatar
    A.Mustafa Posts: 1, Reputation: 1
    New Member
     
    #1

    Jan 10, 2012, 07:44 AM
    Marginal costing and absorption profit?
    The following budgeted information relates to a manufacturing company for next period:



    Unit $
    Production 14,000 Fixed production costs 63,000

    Sales 12,000 Fixed selling costs 12,000


    The normal level of activity is 14,000 units per period. Using absorption costing the profit for next period has been calculated as $36,000.

    What would be the profit for next period using marginal costing?

Check out some similar questions!

Absorption and marginal costing [ 2 Answers ]

Acting as the assisistant of the new management accountant examine the data provided by king plc,on both manegement and financial accountant and discuss any apparent conflit between the figures. Discuss which figure should be used in the continuing the production of the lilywhite? What other...

Marginal and Absorption costing [ 4 Answers ]

Toys (Pty) Ltd is a cupboard manufacturing concern. The following information was obtained from the records for the month ended 31 January 2007: Units Opening stock 6 000 Budgeted units...

Absorption costing profit from Marginal costing profit [ 0 Answers ]

I know my opening stock and closing stock figures and I have worked out my annual profit using marginal costing. I also know my fixed overhead absorption rate. Using these figures, what formula do I use to calculate my profit using absorption costing?


View more questions Search
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.