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What was the total variable production overhead variance in September?
Refer to the exhibit. SP, a manufacturing company, uses a standard costing system. The standard variable production overhead cost is based on the following budgeted figures for the year: During the month of September, 5,300 actual hours were worked and 5,600 standard hours of output were produced. Total variable production...
Within the relevant range, a variable cost is a cost which:
Within the relevant range, a variable cost is a cost which:A . cannot be forecast with any degree of accuracy because of its variability.B . varies in total in proportion to the level of activity.C . varies per unit in proportion to the level of activity.D . varies in total...
If the wage rate is £6 per hour and the overtime premium is 50%, what is the budgeted labour cost?
CORRECT TEXT Each unit of product GM requires 4 labour hours to be produced. 25% of the units will be completed during overtime hours. Sales of 24,000 units are planned and finished goods inventory is budgeted to rise by 2,000 units. If the wage rate is £6 per hour and...
In a period in which labour hours are in short supply, which of the following options is the rank order of production?
Refer to the exhibit. C Ltd manufactures three products, which require the same type of materials. The following contribution and profit per unit is available: In a period in which labour hours are in short supply, which of the following options is the rank order of production?A . Option AB...
Prime cost is:
Prime cost is:A . Total product cost minus overheadsB . The material cost of the productC . The cost of operating a cost centreD . All costs incurred in making a productView AnswerAnswer: A
CORRECT TEXT
CORRECT TEXT Refer to the Exhibit. The following budgetary information is available for a department in a manufacturing company: The production overhead absorption rate percentage, when the percentage on prime cost is used, is:View AnswerAnswer: 200%
CORRECT TEXT
CORRECT TEXT A company operates a full cost system of pricing. Production overheads are absorbed using a pre-determined absorption rate of £3.50 per machine hour. The direct production cost of product A is £15 per unit and it utilises 6 machine hours per unit. The mark-up for non-production costs is...
What is the value of the abnormal gain in August?
Refer to the Exhibit. PD manufactures a product in a process operation. Normal loss is 5% of input and occurs at the end of the process. The following data is available for the month of August: Scrapped units have no value. There was no opening or closing work in progress...
A company can increase its margin of safety by which of the following independent actions?
A company can increase its margin of safety by which of the following independent actions? (a) Increasing sales and production (b) Raising the selling price per unit (c) Raising the variable cost per unit (d) Lowering fixed costsA . (a) and (b) onlyB . (a), (b) and (c) onlyC ....
The accounting treatment for overheads over absorbed is to:
The accounting treatment for overheads over absorbed is to:A . Debit the income statement for the periodB . Increase the cost per unit for the periodC . Credit the income statement for the periodD . Decrease the cost per unit for the periodView AnswerAnswer: C
