Question 4 Pendrill makes car bumpers. The following information is obtained from January's budge and is based on a production volume of 6,000 car bumpers $ Opening stock of car bumpers Fixed manufacturing overhead Variable manufacturing overhead Selling and administrative expenses (all fixed) Direct labour 72,000 18,000 25,000 120,000 Direct material used Selling price (unit) 90,000 64 The actual production and sales volumes for the first 3 months of the year were as follows: Number of car January bumpers: Production level 6,000 February March Quarter 7,000 7,000 18,000 17,000 5,000 Sales 4,000 6,000 Actual variable costs per unit and total fixed overheads incurred were exactly as forecast Required: Calculate the profit for each month and for the quarter (i) Using absorption costing (ii) Using marginal costing

Question 4 Pendrill makes car bumpers. The following information is obtained from January's budge and is based on a production volume of 6,000 car bumpers $ Opening stock of car bumpers Fixed manufacturing overhead Variable manufacturing overhead Selling and administrative expenses (all fixed) Direct labour 72,000 18,000 25,000 120,000 Direct material used Selling price (unit) 90,000 64 The actual production and sales volumes for the first 3 months of the year were as follows: Number of car January bumpers: Production level 6,000 February March Quarter 7,000 7,000 18,000 17,000 5,000 Sales 4,000 6,000 Actual variable costs per unit and total fixed overheads incurred were exactly as forecast Required: Calculate the profit for each month and for the quarter (i) Using absorption costing (ii) Using marginal costing

Name: Question 4Pendrill makes car bumpers. The following information is ob
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Description: Question 4Pendrill makes car bumpers. The following information is obtained from January's budgetand is based on a production volume of 6,000 car bumpers$Opening stock of car bumpersFixed manufacturing overheadVariable manufacturing overheadSelling

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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