What would the budgeted profit be if a marginal costing system were used?
A、$22,500 lower
B、$10,000 lower
C、$10,000 higher
D、$22,500 higher
A、$22,500 lower
B、$10,000 lower
C、$10,000 higher
D、$22,500 higher
【参考答案及解析】
Production volume exceeded sales volume, so the profit with absorption costing is higher than the profit with marginal costing. Fixed overheads in inventory = $30,000/750 = $40 per unit, therefore total fixed overhead in closing inventory (absorption costing) = 250 units x $40 = $10,000. Profit with marginal costing is therefore lower by $10,000.
Production volume exceeded sales volume, so the profit with absorption costing is higher than the profit with marginal costing. Fixed overheads in inventory = $30,000/750 = $40 per unit, therefore total fixed overhead in closing inventory (absorption costing) = 250 units x $40 = $10,000. Profit with marginal costing is therefore lower by $10,000.