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A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2018 · Q261 Mark

A company manufactures a single product with a selling price of $75 per unit. The table shows the costs based on sales and production volume of 8000 units. direct costs $158000 variable manufacturing overheads $74000 fixed manufacturing overheads $80000 variable selling overheads $20000 fixed administration overheads $100000 If absorption costing is applied, what is the gross profit on each unit sold?

A$21.00
B$36.00
C$43.50
D$46.00

✓ Correct answer

B: $36.00

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About this question

Topic
Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source
A-Level Accounting, Oct/Nov 2018 Paper 1 Variant 2, question 26.

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