(Solved by Humans)-Z Limited manufactures a single product, the budgeted selling price and variable cost details of...

Question

Z Limited manufactures a single product, the budgeted selling price and variable cost details of which are as follows; (£) Selling price 15.00 Variable costs per unit: Direct materials 3.50 Direct labour 4.00 Variable overhead 2.00 Budgeted fixed overhead costs are £60 000 per annum, charged at a constant rate each month. Budgeted production is 30 000 units per annum. In a month when actual production was 2400 units and exceeded sales by 180 units the profit reported under absorption costing was A £6660 B £7570 C £7770 D £ 8200 E £8400