I do not have the lecture notes with me so can't confirm. But, I reckon, these are two different types of variable cost. 5$ is the VC for production and 1$ is the VC for selling the product. Therefore the 1$ does not go to the "cost card" as it's an indirect cost.
Thank you sir
Why is variable cost $1 when he is counting for adjustments and not 5$ as it was in the cost card?
I do not have the lecture notes with me so can't confirm. But, I reckon, these are two different types of variable cost. 5$ is the VC for production and 1$ is the VC for selling the product. Therefore the 1$ does not go to the "cost card" as it's an indirect cost.
i dont understand. Why is the profit increased from $72000 to $74000?
he put back 2000 which is over absorbed to fixed o/h so he add at profit
@@abdowxajji9771 his videos have always been my life saver but i had to watch this one twice to get this point. profit wouldve been understated