A company has established a marginal costing profit of $72,300. Opening inventory was 300 units andc closinginventory is 750 units. The fixed production overhead absorption rate has been calculated as$ 5/unit. What was the profit under absorption costing?
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
A company has established a marginal costing profit of $72,300. Opening inventory was 300 units andc closinginventory is 750 units. The fixed production
What was the profit under absorption costing?
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