The following is the cost card for a unit of product.
Direct material 10
Direct labour 12
Variable production overhead 23
Fixed production overhead 12
Variable admin and distribution cost 10
Fixed admin and distribution cost 13
Total cost per unit 80
The inventory levels increased from 200 units to 300 units during the period. What would be the difference between the profit
figures under marginal costing and absorption costing systems?
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