Refer to the exhibit.A management accountant had prepared the following initial overhead analysis, showing the overhead allocated and apportioned to the three cost centres. The number of employees in each cost centre is also shown.The service cost centre costs are now to be reapportioned to the production cost centres on the basis of the number of employees in each production cost centre. After the reapportionment has been completed, the total overhead cost of the Assembly department will be:
Answer(s): C
CORRECT TEXT Refer to the exhibit.RX Ltd expects to have limited machine time for July, which will result in the following production levels:It is anticipated that there will be 1,500 units of opening inventory and the company wishes to hold a minimum of 500 units of closing inventory at the end of July.How many units will be available for sale during July?
Answer(s): A
A company operates a flexible budget system. A budget for direct material cost is set at £12500 for 2500 kgs of material.It is budgeted that all materials will be obtained at a 5% discount when total production is in excess of 2700 kgs.What variance is reported if actual material usage is 3000 kgs and the actual cost is £13500?
Which of the following would be the most appropriate cost unit for a transport delivery service?
Answer(s): D
CORRECT TEXT Refer to the exhibitZeff Ltd has forecast that the relationship between total overheads and machine hours will be as follows:If the budget is to be based on 4,000 machine hours, the fixed overhead absorption rate will be:Give your answer to 2 decimal places.
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