Page 77 - BA2 Integrated Workbook - Student 2017
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Marginal and absorption costing
2.2 Marginal costing profit statement
Consider the following data about a company:
A company manufactures two products, the ABC and the XYZ. Details for the two
products for last month are:
ABC XYZ
$ $
Selling price per unit 200 180
Direct materials per unit 30 50
Direct labour per unit 40 60
Variable overheads per unit 10 15
Units produced and sold 400 250
Other information:
Fixed overheads for the period are $27,000 and are absorbed on the basis of direct
labour hours. Direct labour is paid at a rate of $10 per hour.
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