A firm has commenced production of a new product with a planned selling price of 252,000 KHR. Production was at the planned level of 100,000 units although 20,000 of these remained unsold at the period end. Actual costs incurred were as follows: Direct materials 54,000 KHR per unit Direct labour 36,000 KHR per unit Variable production overhead 18,000 KHR per unit Variable selling costs 18,000 KHR per unit Fixed production overhead 3,600 KHR m as per budget Fixed selling costs 1,440 KHR m as per budgetWhat net profit figure would be earned under absorption costing?

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Absorption Costing Net Profit Calculation for AMaze Corp We can calculate the net profit under absorption costing using the following steps 1 Producti... View the full answer