A company uses standard absorption costing to value inventory. Its fixed overhead absorption rate is R12 per labour hour and each unit of production should take 4 labour hours. In a recent period when there was no opening inventory of finished goods, 20 000 units were produced using 100 000 labour hours, 18 000 units were sold. The actual profit was R464 000. What profit would have been earned under a standard variable costing system? Oa R440 000 O b. R368 000 OC. R344 000 O d. R560 000

A company uses standard absorption costing to value inventory. Its fixed overhead absorption rate is R12 per labour hour and each unit of production should take 4 labour hours. In a recent period when there was no opening inventory of finished goods, 20 000 units were produced using 100 000 labour hours, 18 000 units were sold. The actual profit was R464 000. What profit would have been earned under a standard variable costing system? Oa R440 000 O b. R368 000 OC. R344 000 O d. R560 000

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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