A-LevelAccountingCosting / Absorption CostingOct/Nov 2018Paper 1 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
The correct answer is B. This question tests the candidate's understanding of costing / absorption costing within the Accountingsyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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