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A company has put together a standard cost card for its single production as shown below. Budgeted monthly production is 2,500 units Selling price $150 Direct Labour (5 hours @$10/hour) $50 Direct Materials (6 liters @$5/liter) $ 30 Variable Overheads (5 hours @$6/hour) $ 30 Fixed Overheads $25 Profit $15 Actual production in December 2,300 units Actual costs in December were as budgeted except for materials which were 20% more expensive and variable overheads which were 30% cheaper. Using Marginal Costing method what is the actual profit for December? a. $ 1,000 b. $15 C. $ 61,400 d. $ 53,500

A company has put together a standard cost card for its single production as shown below. Budgeted monthly production is 2,500 units Selling price $150 Direct Labour (5 hours @$10/hour) $50 Direct Materials (6 liters @$5/liter) $ 30 Variable Overheads (5 hours @$6/hour) $ 30 Fixed Overheads $25 Profit $15 Actual production in December 2,300 units Actual costs in December were as budgeted except for materials which were 20% more expensive and variable overheads which were 30% cheaper. Using Marginal Costing method what is the actual profit for December? a. $ 1,000 b. $15 C. $ 61,400 d. $ 53,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company has put together a standard cost card for its single production as shown below. Budgeted monthly production is 2,500 units Selling price $150 Direct Labour (5 hours @$10/hour) $50 Direct Materials (6 liters @$5/liter) $30 Variable Overheads (5 hours @$6/hour) $ 30 Fixed Overheads $25 $15 Profit Actual production in December 2,300 units Actual costs in December were as budgeted except for materials which were 20% more expensive and variable overheads which were 30% cheaper. Using Marginal Costing method what is the actual profit for December? a. $1,000 b. $ 15 C. $ 61,400 d. $ 53,500
Transcribed Image Text:A company has put together a standard cost card for its single production as shown below. Budgeted monthly production is 2,500 units Selling price $150 Direct Labour (5 hours @$10/hour) $50 Direct Materials (6 liters @$5/liter) $30 Variable Overheads (5 hours @$6/hour) $ 30 Fixed Overheads $25 $15 Profit Actual production in December 2,300 units Actual costs in December were as budgeted except for materials which were 20% more expensive and variable overheads which were 30% cheaper. Using Marginal Costing method what is the actual profit for December? a. $1,000 b. $ 15 C. $ 61,400 d. $ 53,500
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