4. Management Accounting
Absorption Costing — Quiz
Test your understanding of absorption costing with 5 practice questions.
Practice Questions
Question 1
A company has budgeted fixed overheads of $\$180,000$ and budgeted production of $30,000 units. The actual production is $28,000$ units, and the actual fixed overheads incurred are $\$175,000. What is the total amount of fixed overheads absorbed under absorption costing?
Question 2
A company produced $5,000$ units and sold $4,800$ units. The fixed manufacturing overheads were $\$40,000, and the fixed overhead absorption rate was $\$8 per unit. What is the amount of fixed overhead included in the closing inventory under absorption costing?
Question 3
A company's budgeted fixed overheads are $\$250,000, and the budgeted production is $50,000$ units. The actual production is $55,000$ units, and the actual fixed overheads incurred are $\$260,000. What is the total fixed overhead absorbed under absorption costing?
Question 4
A company produced $10,000$ units and sold $9,500$ units in a period. The fixed manufacturing overheads for the period were $\$60,000, and the fixed overhead absorption rate was $\$6 per unit. What is the amount of fixed overhead included in the closing inventory under absorption costing?
Question 5
A company has budgeted fixed overheads of $\$300,000$ and budgeted production of $75,000 units. If actual production is $70,000$ units, what is the fixed overhead absorption rate per unit under absorption costing?