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

Costs and cost behaviour — practice question

The budgeted figures for June are: production of $5000$ units; sales of $4000$ units; sales revenue of $\$180\,000$; direct materials and labour costing $\$130\,000$; variable overheads of $\$15\,000$; and fixed overheads of $\$25\,000$. Opening inventory is nil. Using marginal costing, Calculate the budgeted profit for June.

  • A$\$10\,000$
  • B$\$36\,000$
  • C$\$39\,000$
  • D$\$44\,000$

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