HMF Co produces a single product. The budgeted fixed production overheads for the period are $500,000. The budgeted output for the period is 2,500 units. Opening inventory at the start of the period consisted of 900 units and closing inventory at the end of the period consisted of 300 units. If absorption costing principles were applied, the profit for the period compared to the marginal costing profit would be which of the following?
A、$125,000 higher
B、$125,000 lower
C、$120,000 higher
D、$120,000 lower
A、$125,000 higher
B、$125,000 lower
C、$120,000 higher
D、$120,000 lower
【参考答案及解析】
Units Opening inv 900 Closing inv 300 Decrease 600 x〔$500,000) / 2,500 ) = 120,000 lower
Units Opening inv 900 Closing inv 300 Decrease 600 x〔$500,000) / 2,500 ) = 120,000 lower