Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

The details below apply to one accounting period. Opening inventory: 40 000 units; closing inventory: 44 000 units; absorption cost profit: $284 000; marginal cost profit: $250 000. What was the overhead absorption rate per unit during the accounting period?

  • A$6.25
  • B$6.45
  • C$7.10
  • D$8.50

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