Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

The information below refers to one accounting period. inventory at the start: $40\,000$ units inventory at the end: $44\,000$ units absorption cost profit: $\$284\,000$ marginal cost profit: $\$250\,000$ What overhead absorption rate per unit applied in this accounting period?

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

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