Page 173 - F2 - MA Integrated Workbook STUDENT 2018-19
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Absorption and marginal costing
2.2 Marginal costing profit statement
Example 1
A company produced 3,000 units of their only product in the last period. The
unit costs of the product were:
$
Direct material 20
Direct labour 15
Variable production overhead 8
Fixed production overhead 11
–––
Standard production cost 54
The sales for the period were 2,500 units at $85 per unit.
There were 50 units of opening inventory.
The fixed production overhead incurred in the last period was $30,000
Selling, distribution and administration expenses in the period are:
Fixed $5,000
Variable 10% of sales value
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