BA2 Exam Dumps : Fundamentals of management accounting

The following data are available for a company that produces and sells a single product.

The company’s opening finished goods inventory was 2,500 units.

The fixed overhead absorption rate is $8.00 per unit.

The profit calculated using marginal costing is $16,000.

The profit calculated using absorption costing and valuing its inventory at standard cost is $22,400.

The company’s closing finished goods inventory is:

Which of the following statements regarding variances is valid?

Refer to the exhibit.

SL manufactures a single product, the cost and selling price of which are given below:

Fixed overheads per unit are based on a budgeted production volume of 25,000 units.

Budgeted sales are assumed to be 25,000 units.

If all costs increase by 5% but selling price remains the same, by how much must sales change from the budgeted volume to achieve the same budgeted profit?