What is the marginal costing profit for the month?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Cost and selling price details for product Z are as follows.

$ per unit

Direct materials 6.00

Direct labour 7.50

Variable overhead 2.50

Fixed overhead absorption rate 5.00

21.00

Profit 9.00

Selling price 30.00

Budgeted production for the month was 5,000 units although the company managed to produce 5,800 units,

selling 5,200 of them and incurring fixed overhead costs of $27,400.

9.4 What is the marginal costing profit for the month?

A $45,400

B $46,800

C $53,800

D $72,800

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