Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

The following figures are predicted for the coming month: opening inventory: 20 300 units closing inventory: 22 500 units marginal cost profit: $90 600 absorption cost profit: $100 400 What is the overhead absorption rate for each unit?

  • A$4.03
  • B$4.45
  • C$4.46
  • D$4.95

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