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The following data is available for period 9.

Opening inventory               10,000 units

Closing inventory                  8,000 units

Absorption costing profit       $280,000

What would be the profit for period 9 using marginal costing?

A

$278,000

B

$280,000

C

$282,000

D

Impossible to calculate without more information

The overhead absorption rate for product T is $4 per machine hour. Each unit of T requires 3 machine hours. Inventories of product T last period were:

                                          Units

Opening inventory            2,400

Closing inventory              2,700

Compared with the marginal costing profit for the period,the absorption costing profit for product T will be which of the following?

A

$1,200 higher

B

$3,600 higher

C

$1,200 lower

D

$3,600 lower

In a period where opening inventories were 15,000 units and closing inventories were 20,000 units, a firm had a profit of $130,000 using absorption costing. If the fixed overhead absorption rate was $8 per unit, the profit using marginal costing would be which of the following?

A

$90,000

B

$130,000

C

$170,000

D

Impossible to calculate without more information

In a period, a company had opening inventory of 31,000 units and closing inventory of 34,000 units. Profits based on marginal costing were $850,500 and on absorption costing were $955,500. If the budgeted total fixed costs for the company was $1,837,500, what was the budgeted level of

A

32,500

B

52,500

C

65,000

D

105,000

A company had opening inventory of 48,500 units and closing inventory of 45,500 units. Profits based on marginal costing were $315,250 and on absorption costing were $288,250. What is the fixed overhead absorption rate per unit?

A

$5.94

B

$6.34

C

$6.50

D

$9.00

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