Page 272 - P1 Integrated Workbook STUDENT 2018
P. 272
Subject P1: Management Accounting
1.2 An organisation produces a single product for which the following standard cost
data are available:
$ per unit
Selling price 81
Direct materials 21
Direct labour 12
Variable production overhead 9
Variable selling overhead 6
Fixed production overhead 15
Fixed selling overhead 3
Data for last period are as follows.
Opening inventory 6,000 units
Closing inventory 4,000 units
Absorption costing profit $288,000
The reported profit using marginal costing would be $_________________
(Your answer should be rounded down to the nearest $)
1.3 A company using activity-based costing has the following details regarding two
of its products:
Product A Product B
Budgeted production (units) 2,000 8,000
Machine hours per unit 5 5
Number of production runs required 20 8
Number of inspections during production 8 8
(for the budgeted production level)
Overhead costs are budgeted as follows:
Production set-up costs (total) $50,400
Quality control costs (total) $144,000
Other overhead costs $50,000
Other overhead costs are absorbed on the basis of machine hours.
The overhead cost per unit of Product A is $_________________
(Your answer should be rounded down to the nearest $)
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