Question 6 (6 Marks) Entity Z is trying to obtain a cost estimate for the costs of repairs. The following monthly repair
Posted: Fri Jul 01, 2022 7:36 am
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?
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?