The finance director (FD) has been tasked by the board to calculate the profit of changin costing system from variable to absorption costing. The FD has requested you g necessary information and provide the relevant calculations. You obtained the following information: 2.1 2.2 2.3 2.4 Detail Units produced/manufactured during the period Units sold during the period Variable cost per unit Selling price per unit Total fixed costs for the period (NB: Includes R960,000 fixed manufacturing costs) Compare the profitability of the two costing systems. Explain the difference in profitability in the previous question 32,000 27,000 R100 R250 R1,500,000 Which costing system would you recommend and why? would happen to profit figures in period 2 if 27,000 units are manufactured and 32,000 units are sold, considering 5,000 units of initial inventory from period 1

The finance director (FD) has been tasked by the board to calculate the profit of changin costing system from variable to absorption costing. The FD has requested you g necessary information and provide the relevant calculations. You obtained the following information: 2.1 2.2 2.3 2.4 Detail Units produced/manufactured during the period Units sold during the period Variable cost per unit Selling price per unit Total fixed costs for the period (NB: Includes R960,000 fixed manufacturing costs) Compare the profitability of the two costing systems. Explain the difference in profitability in the previous question 32,000 27,000 R100 R250 R1,500,000 Which costing system would you recommend and why? would happen to profit figures in period 2 if 27,000 units are manufactured and 32,000 units are sold, considering 5,000 units of initial inventory from period 1

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Description: Please help with my homework question. QUESTION 2The finance director (FD) has been tasked by the board to calculate the profit of changingcosting system from variable to absorption costing. The FD has requested you ganecessary information and provid

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 4P: Using the data in P4-2 and Microsoft Excel: 1. Separate the variable and fixed elements. 2....

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