Page 235 - BA2 Integrated Workbook - Student 2017
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Supplementary objective test questions
4.4 A manufacturing organisation has two production departments (P and F) and two
service departments (Q and M). After primary apportionment the overheads for
the factory are as follows:
P: $220,000
F: $160,000
Q: $140,000
M: $113,000
Work done by the two service departments is as follows:
P F Q M
Q 45% 35% 20%
M 30% 40% 30%
Using the equation method, calculate the total overhead to be apportioned
to department F?
CHAPTER 5 – MARGINAL AND ABSORPTION COSTING
5.1 A company manufactures a range of products, including product G for which the
total cost is $32 per unit. The company's budgeted total cost for the period is
$580,000 and the budgeted rate of return on the capital employed of $435,000 is
20%.
Calculate the cost-plus selling price of one unit of product G should be (to
the nearest cent) $ _______.
5.2 If the selling price of a product is $100 and the profit margin is 50%, which
one of the following statements is true?
A Mark up is 50%
B Mark up is 100%
C Mark up is 150%
D Mark up is impossible to determine without knowing unit cost
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