Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company manufactures and sells a single product Budgeted data per unit of the product is Selling Price Variable Cost Faxed Production overhead R

 

A company manufactures and sells a single product Budgeted data per unit of the product is Selling Price Variable Cost Faxed Production overhead R 8.50 3.70 2.90 20 MARKS The above fixed production overhead absorption rate is based on budgeted production of 12,000 units per period. Budgeted non-production overhead (all fixed) is R16, 800 per period. Actual sales and production for two periods has been: Sales Production Period 1 Period 2 11 600 units 12 400 units 12 000 units 12 300 units There was no stock at the start of Period 1. The selling price, unit vanable costs and total fixed costs were as per budget in both penods. REQUIRED 1.1 Prepare profit statements, using absorption costing, showing the actual results for each of the two periods. The company wishes to compare the results reported in (1.1) above with those that would be reported using marginal costing 1.2 Prepare profit statements, using marginal costing, showing the actual results for each of the two periods. (7)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray Garrison, Theresa Libby, Alan Webb

9th canadian edition

1259269477, 978-1259269479, 978-1259024900

More Books

Students also viewed these Accounting questions