Reference no: EM132833117

Tlf compay manufactures a single product the claud, the following budgeted figures relate to the claud for a one year period

Sales and production units 800
Sales $16000
Production costs : variable $6400, fixed $1600
Sales and distribution costs :
Variable $3200
Fixed $2400

• Fixed costs are incurred throughout the year ,the actual fixed costs are the same as budgeted
• Actual variable costs per unit are also the same as bugeted
• All of the variable production costs are direct costs
• There were no inventories of claud at the beginning of the year
• In the first quarter 220 units were produced and 160 units sold

Problem 1: calculate the fixed production costs absorbed by claud in the first quarter if absorption costing is used

Problem 2: calculate under/over recovery of overheads during the quarter

Problem 3: calculate the profit using absorption costing

Problem 4: calculate the profit using marginal costing