QUESTION THREE The following is a list of unit costs for a single product, incurred in a period, using either marginal costing or absorption costing: Marginal costing K Absorption costing K K K Production costs: Prime cost 4:20 4.20 Variable overhead 0-60 0.60 Fixed overhead 3-80 4-80 8-60 Selling & administration costs: Variable overhead 1.00 1.00 Fixed overhead 2.90 1.00 3.90 Total 5-80 12.50 The selling price of the product, throughout the period, was K14.50 per unit. 11,400 units of the product were manufactured in the period during which 11,200 units were sold. There were no finished goods at the beginning of the period. The fixed production overhead costs per unit listed above are based on the production units for the period and the fixed selling and administration overhead costs per unit are based on the sales units. Required:

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter6: Activity-based, Variable, And Absorption Costing
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Problem 13MC: Activity-based costing systems: A. use a single predetermined overhead rate based on machine hours...
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QUESTION THREE
The following is a list of unit costs for a single product, incurred in a period, using either
marginal costing or absorption costing:
Marginal costing
K
Absorption costing
K
K
K
Production costs: Prime cost
4:20
4.20
Variable overhead
0-60
0.60
Fixed overhead
3-80
4-80
8-60
Selling & administration costs:
Variable overhead
1.00
1.00
Fixed overhead
2.90
1.00
3.90
Total
5-80
12.50
The selling price of the product, throughout the period, was K14.50 per unit. 11,400
units of the product were manufactured in the period during which 11,200 units were
sold. There were no finished goods at the beginning of the period. The fixed production
overhead costs per unit listed above are based on the production units for the period
and the fixed selling and administration overhead costs per unit are based on the sales
units.
Required:
Transcribed Image Text:QUESTION THREE The following is a list of unit costs for a single product, incurred in a period, using either marginal costing or absorption costing: Marginal costing K Absorption costing K K K Production costs: Prime cost 4:20 4.20 Variable overhead 0-60 0.60 Fixed overhead 3-80 4-80 8-60 Selling & administration costs: Variable overhead 1.00 1.00 Fixed overhead 2.90 1.00 3.90 Total 5-80 12.50 The selling price of the product, throughout the period, was K14.50 per unit. 11,400 units of the product were manufactured in the period during which 11,200 units were sold. There were no finished goods at the beginning of the period. The fixed production overhead costs per unit listed above are based on the production units for the period and the fixed selling and administration overhead costs per unit are based on the sales units. Required:
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