11a

Variable materials 4kg @15/kg 60.00

Variable labours 2,5 hours @16/hour 40.00
Variable Production Overheads 10/unit 10.00
110.00

Budgeted production and sales 4,800.00

Selling for a budgeted price @ 300.00
Budgeted fixed production overhead 192,000.00
Selling administration and distribution costs
Fixed per quarter 27,000.00
Variable per unit 7.00
Ending inventory Jan 31 55.00
February sold 440.00
February manufactured 420.00
Actual costs and the selling
price were as budget except for the fixed selling, administration and distribution costs, which were 12%
higher than budgeted and fixed production overheads, which were 16,374

Budgeted overhead absorption rate 40.00

Inventory value per unit :
Absorption Costing 150.00
Marginal Costing 110.00
Actual fixed production cost 16,374.00
Absorbed fixed production cost 16,800.00
Over absorption 426.00

Absorption Marginal
Sales 132,000.00
Variable production costs 46,200.00 46,200.00
Fixed production costs absorbed 16,800.00
Opening inventory 8,250.00 6,050.00
Closing inventory 5,250.00 3,850.00
Production cost of sales 66,000.00
over absorption 426.00
Variable selling, administration and distribution 3,080.00
Fixed selling, administration and distribution 10,080.00
Fixed production costs absorbed
Profit/loss 52,414.00

11b
lower
11c
Markup 25% 100.00
Margin 25% 106.67
Marginal
132,000.00

48,400.00

3,080.00
10,080.00
16,374.00
54,066.00