Page 188 - F2 - MA Integrated Workbook STUDENT 2018-19
P. 188
Chapter 8
Test your understanding 5
GHI has just completed its first year of trading, manufacturing and selling
product GH1. The following information has been collected from the
accounting records.
Product GH1
Sales volume 70,000
$
Selling price per unit 8.00
Variable cost per unit
Production 6.00
Selling and administration 0.20
Fixed costs per unit
Production overhead 1.20
The fixed production overhead cost was based on a budget of $90,000.
Actual fixed production overheads and production volume were as budgeted.
GHI uses absorption costing
If GHI used marginal rather than absorption costing:
The profit will be $ higher/lower
Illustrations and further practice
Now try TYU question 3 from Chapter 8
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