Day: November 8, 2023

The following budgeted information is supplied by Alex Trading Ltd.

• selling price per unit £150
• total costs per unit £120
• budgeted sales 6,000 units

Variable costs are 40% of total costs.

What are the total budgeted fixed overheads for the period?

Select ONE answer:

1. £288,000
2. £360,000
3. £432,000
4. £540,000

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – £120 * 0.6 * 6,000
4. Not correct

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