A-LevelAccountingTraditional costing methods9706/12 · May/June 2017 · Q261 Mark

The budgeted income statement of J Limited shows the following. $ sales 400 000 variable costs 240 000 fixed costs 132 000 profit for the year 28 000 What is the margin of safety in dollars?

A$70000

B$160000

C$268 000

D$330000

✓ Correct answer

A: $70000

Oracle Prep sorts past-paper questions by topic, so you can drill Traditional costing methods and see which topics are most likely to come up next.

Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2017 Paper 1 Variant 2, question 26.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

A company manufactures three products. The following information is obtained in respect of next month's budgeted prod…

The following information is available. Direct materials $20000; direct labour $45000; direct expenses $6000; variab…

A company provides the following information. Budgeted overheads $136000; budgeted labour hours 10568; actual overhe…

The statement of financial position of X Limited at 31 December 2017 shows the following. $000 non-current assets 135…

What is a direct cost?

A company pays its employees $6.80 per hour for a basic 40-hour week. An overtime premium of 50% is payable together …