ABC Ltd is a company engaged in the manufacturing and selling of metal cans .The following data provided below relate to ABC Ltd for the months October and November 2021.

Variable Selling Overhead: 10% of sales value

Normal Capacity was 11,000 units per month

You are required to prepare the profit statements for the month of October and November 21

Using marginal costing method . (7 marks)

Using absorption costing method . (7 marks)

Calculate the Over/under absorption of fixed cost production overhead .(5 marks)

Briefly explain why the profit per month varied under marginal and absorption costing method. (6 marks)

Answer rating: 100% (QA)

Given Data Variable Selling Overhead 10 of sales value Normal Capacity 11000 units per month October 2021 Marginal Costing Method Total Sales 100000 Variable Cost Variable Manufacturing Cost Direct Ma... View the full answer