Question 6 (6 Marks) Entity Z is trying to obtain a cost estimate for the costs of repairs. The following monthly repair

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Question 6 (6 Marks) Entity Z is trying to obtain a cost estimate for the costs of repairs. The following monthly repair

Post by answerhappygod »

Question 6 (6 Marks)
Entity Z is trying to obtain a cost estimate for the costs ofrepairs. The following monthly repair costs have been recorded forthe past six months.
Plack Company is a manufacturing company that makes and sells asingle product. The following information relates to the company’smanufacturing operations in the next financial year.
Opening and closing stock: Nil
Production: 18,000 units
Sales: 15,000 units
Fixed production overheads: R117,000
Fixed sales overheads: R72,000
Using absorption costing, the company has calculated that thebudgeted profit for the year will be R43,000.
Required:
What would be the budgeted profit if marginal costing is used,instead of absorption costing?
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply