very diff question

[osama1122]

In January, a business had opening stocks of 25 200 units and closing stocks of 28 200 units.
The profit calculated on marginal costing principles was $100 800 and that calculated on
absorption costing principles was $120 300.
What was the fixed overhead absorption rate per unit?
A $4.00 B $4.27 C $6.17 D $6.50

 

[hamza87]

this is easy first calculate the difference between the profit of marginal and absorption costing
then find the difference between closing stock and opening stock
120300-100800=19500
28200-25200=3000
fixed overhead absorption rate is 19500/3000=6.50
answer is D