Free BA2 Exam Braindumps (page: 18)

Each finished carton of product P contains 15 litres of liquid L. During the production process there is an unavoidable loss of 20% of the liquid input. The standard price of liquid L is $2 per litre.

The standard ingredient cost for liquid L shown on the standard cost card for one carton of product P will be

The following costs are incurred by a company which owns a five star hotel. Which THREE of the items would normally be classified as variable costs?

Within the relevant range, a variable cost is a cost which:

CORRECT TEXT

Refer to the exhibit.



Patchit Limited operates a job costing system. They have been asked to quote for a rush job that will require to be done in overtime hours. It is estimated that the job will incur the following costs:

Production overheads are absorbed on a direct labour hour basis. Budgeted direct labour hours for the year were 50,000 and budgeted direct labour cost was $300,000.

If production overheads had been based on a percentage of direct labour cost, the revised production costs for the job would be: