Rubble Ltd develops an annual overhead budget at the start of each year (which has remained unchanged for the last 2 years), and closes any over- or underapplied overhead at year-end. For the firm's single product the following ending inventory levels have been experienced during the last 7 months: For how many months would variable costing profit be higher than absorption?
A) 1
B) 2
C) 3
D) 4

Question

Rubble Ltd develops an annual overhead budget at the start of each year (which has remained unchanged for the last 2 years), and closes any over- or underapplied overhead at year-end. For the firm's single product the following ending inventory levels have been experienced during the last 7 months:  For how many months would variable costing profit be higher than absorption?
A) 1 
B) 2 
C) 3 
D) 4

Quizplus · Accepted Answer

The Answer of Rubble Ltd develops an annual overhead budget at the start of each year (which has remained unchanged for the last 2 years), and closes any over- or underapplied overhead at year-end. For the firm's single product the following ending inventory levels have been experienced during the last 7 months:  For how many months would variable costing profit be higher than absorption?
A) 1 
B) 2 
C) 3 
D) 4

Rubble Ltd Develops an Annual Overhead Budget at the Start