QUESTION: 33

Company NBO is providing a quote to manufacture 500 passenger seats for a bus

company.

Relevant cost is being used as the basis for the quote.

Which THREE of the following should be included as relevant costs or savings in the production of the 500 passenger seats?

Equipment depreciation of $2,000 for the time the passenger seats are in production.
Electricity charges of $1,500 for the completion of the order.
Administration overheads of $3,200 apportioned on the basis of labour hours in production.
Seat cover material, to be bought for $6,000, which cannot be used on other products.
Idle time pay of $1,000 which would be paid to workers if the quote is not accepted
$750 paid for a consultant's advice on quoting for the order.

Answer(s): B,D,E

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QUESTION: 34

A company is preparing its annual budget and is estimating the number of units of Product W that it will sell in each quarter of year 2. Past experience has shown that the trend for sales of the product is represented by the following relationship:

Calculate the expected unit sales of Product W for each quarter of year 2, after adjusting for seasonal variations using the multiplicative model.