Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

A company works out its monthly profit by marginal costing as $90000$. The opening inventory is $4000$ units, while the closing inventory is $6000$ units. The fixed production overhead absorption rate equals $20$ per unit. What is the profit under absorption costing?

  • A$10000
  • B$50000
  • C$130000
  • D$170000

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