Gce Model Questions Vol1 2023 Financial Accounting Question 38
Practice objective / multiple choice question 38 from the 2023 Gce Model Questions Vol1 Financial Accounting examination.
A manufacturing firm produced 10,000 units during the year. Variable manufacturing costs per unit are £6 for materials, £4 for labour and £5 for variable overhead. Fixed manufacturing overhead for the period is £60,000. The selling price per unit is £30. Fixed selling and administrative expenses amount to £20,000. At the end of the year, 8,000 units were sold and 2,000 units remained in ending inventory. Calculate (a) the profit under absorption costing, (b) the profit under variable costing, and (c) the difference between the two profit figures.
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About This Question
This is Gce Model Questions Vol1 2023 Financial Accounting Question 38. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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