A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2011 · Q301 Mark

A business provides the following data for the year. budgeted output (units) 10 000 actual output (units) 8 000 $ budgeted fixed production costs 1 200 000 budgeted variable production costs 800 000 budgeted fixed selling overhead 600 000 What is the absorption cost per unit used for inventory valuation?

A$200

B$250

C$260

D$325

✓ Correct answer

A: $200

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2011 Paper 1 Variant 2, question 30.

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