John Lawrence I. Tamala
BSA-1
8.9?
8.10
Fixed production costs absorbed under absorption costing = $10 × 2,000 = $20,000
The actual fixed production costs incurred were $20,000 - $4,000 (overabsorbed) = $16,000
Reduction in profit = $20,000 - $16,000 = $4,000
Answer: A
8.11. ?
8.12. ?
8.13. ?
8.14 C
8.15
Production = 350 - 100 = 250
Variable cost per unit = £37,500 / 250 = £150
Absorption cost per unit = £150 + £4 = £154
Absorption profit = 250 units × £154 per unit = £38,599
Answer: C
8.16 B
8.17