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Point 1: XYZ Ltd makes widgets. It has no opening inventory and the closing inventory is 200 units. The budgeted and actual fixed manufacturing costs are $750 and the budgeted and actual production is 1,500 units.
Point 2: The variable manufacturing cost was $1 per unit and the selling price was $6 per unit. Sales commissions of 2.5% of sales revenue are paid to sales people.
Point 3: Other non-manufacturing fixed costs total $1,000.
Question 1: What is the profit under absorption costing?
Select one:
Option 1: $4,655
Option 2: $4,755
Option 3: $4,555
Option 4: $4,855
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