Mathematics · Absorption vs Marginal Costing
A company uses absorption costing to value inventory. Its fixed production overhead absorption rate is $12 per labour hour and each unit of production should take four labour hours. In a recent period when there was no opening inventory of finished goods, 20,000 units were produced using 100,000 labour hours. 18,000 units were sold and the actual profit was $464,000. What profit would have been reported under a marginal costing system?
- 1$440,000
- 2$416,000
- 3$368,000✓
- 4$344,000
Correct answer
$368,000
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Preparing for Mathematics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Want more practice questions on Absorption vs Marginal Costing?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Mathematics · Absorption vs Marginal Costing