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Question 1 - The following data is available for period 9. Opening inventory 10,000 units
Closing inventory 8,000 units
Absorption costing profit $280,000
What would be the profit for period 9 using marginal costing?
A. $278,000
B. $280,000
C. $282,000
D. Impossible to calculate without more information
Question 2 - A company had opening inventory of 48,500 units and closing inventory of 45,500 units. Profits based on marginal costing were $315,250 and on absorption costing were $288,250. What is the fixed overhead absorption rate per unit?
A. $5.94
B. $6.34
C. $6.50
D. $9.00
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