A company uses standard absorption costing to value inventory. Its fixed overhead absorption rate is R12 per labour hour and each unit of production should take 4 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. The actual profit was R464 000. What profit would have been earned under a standard variable costing system? Oa R440 000 O b. R368 000 OC. R344 000 O d. R560 000

A company uses standard absorption costing to value inventory. Its fixed overhead absorption rate is R12 per labour hour and each unit of production should take 4 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. The actual profit was R464 000. What profit would have been earned under a standard variable costing system? Oa R440 000 O b. R368 000 OC. R344 000 O d. R560 000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 14MC: A company produces two products. E and F in batches of 100 units. The production and cost data are:...

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