03-01-2011, 09:43 AM
i got a question for home work and i dont understand the topic very well and i would like some assistance.
Question - Two left feet Ltd. manufactures a single product the Claud. the following figures relates to the Claud for a 1year period.
Activity level at 100%
Sales and Production units 800
Sales $16000
Production costVariable 6400
Fixed cost 1600
Sales & Distribution- Variable 3200
Fixed 2400
the ;eve; of activity is 800 units fixed costs are incurred eventty throughout the year. the actual fixed asset are the same as budgeted.
there were no stock of Claud at the beginning of the year. the 1st quarter 200 units were produced and 160 were sold.
1. Calculate the Fixed Production costs absorbed in the 1st quarter if absorption costing is used.
2. Calculate Profit using Absorption and Marginal costing
Question - Two left feet Ltd. manufactures a single product the Claud. the following figures relates to the Claud for a 1year period.
Activity level at 100%
Sales and Production units 800
Sales $16000
Production costVariable 6400
Fixed cost 1600
Sales & Distribution- Variable 3200
Fixed 2400
the ;eve; of activity is 800 units fixed costs are incurred eventty throughout the year. the actual fixed asset are the same as budgeted.
there were no stock of Claud at the beginning of the year. the 1st quarter 200 units were produced and 160 were sold.
1. Calculate the Fixed Production costs absorbed in the 1st quarter if absorption costing is used.
2. Calculate Profit using Absorption and Marginal costing
