Question

IV
BTEC
SCENARIO 4
MARGINAL AND ABSORPTION COSTING CONCEPT
Big Woof Co manufactures a single product, the Bark, details of which are as follows:
f
Direct labour
Direct material
Variable production overhead
Selling price
16
40
10
180
Annual fixed production overheads are budgeted to be £1.6 million and Big Woof expects to produce 1,280,000
units of the Bark each year. Overheads are absorbed on number of units. Actual overheads are £1.6 million for the
year.
Budgeted fixed selling costs are £320,000 per quarter.
Actual sales and production units for the first quarter are given below:
Sales - 240,000 units for quarter
Production - 280,000 units quarter
There is no opening stock at the beginning of quarter.​

Answer 1

Answer:

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