PAMO Medicals Ltd. makes face masks for the prevention of high contagious virus. For December 2020, PAMO
Question:
PAMO Medicals Ltd. makes face masks for the prevention of high contagious virus. For December 2020, PAMO Medicals incurred the following production costs:
Required
1. Compute PAMO Medicals’ profit using absorption costing if 10,800 units were sold at £40 each.
2. Calculate the over or under absorption costing. Show supporting calculations.
Transcribed Image Text:
Direct material per unit Direct labor per unit Variable manufacturing overhead per unit Sales commission per unit Total fixed manufacturing overhead Budgeted units of production Actual units of production Selling price per unit 4H C CH CH £ £ £ £ 15 9 5 3 £48,600 12,000 12,500 £ 40
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Related Book For
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 9780135628478
17th Edition
Authors: Srikant M. Datar, Madhav V. Rajan
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