pev marginal statement??????

System

for the marginal cost rec statement i took total cost £37.5 less £24 then times it by No actual units 11500, then added or subtracted my 4variances for matterials and labour. My total marginal cost was £260k less than the total absorbtion cost statement (total fixed costs).

in the next task I said the reason for the difference was that fixed costs are not included in margianl costing hence the 260k difference

looks like I probably got this wrong!!!!

any one know if I may get a mark or 2 for method??????

System

Re:pev marginal statement??????

I did something similar, basically costed variables only. and stated the actual variable cost for actual production. I think i should have included a variance for overhead expenditure (or so my book tells me - but too late now)

As for the marking- who knows but i live in hope

System

pev marginal statement??????

teddy14 wrote:

for the marginal cost rec statement i took total cost £37.5 less £24 then times it by No actual units 11500, then added or subtracted my 4variances for matterials and labour. My total marginal cost was £260k less than the total absorbtion cost statement (total fixed costs).

in the next task I said the reason for the difference was that fixed costs are not included in margianl costing hence the 260k difference

looks like I probably got this wrong!!!!

any one know if I may get a mark or 2 for method??????

I've just worked that and it looks a lot better than what i did - makes more sense to marginal costing!

Good luck!