Page 295 - P1 Integrated Workbook STUDENT 2018
P. 295
Answers to supplementary objective test questions
1.5 The answer is:
Rank Product
1st A
2nd C
3rd B
4th D
Based on the following calculation
A B C D
$ $ $ $
Selling price 50 80 100 140
Direct materials 18 40 40 90
–––– –––– –––– ––––
Throughput 32 40 60 50
–––– –––– –––– ––––
Hours on Machine 0.5 1.5 1 2
Throughput per $64 $26.67 $60 $25
minute
Ranking 1 3 2 4
1.6 B
1.7 The answer is 2.
Throughput per bottleneck machine hour = ($620 – $220)/2 hours =$200
Operating expenses per bottleneck machine hour = $70,000/(20 × 35) =$100
Throughput accounting ratio = $200/$100 = 2
1.8 C
1.9 The answer is:
Inventory valuation Costing system
Material cost per unit Throughput accounting
Total variable production cost per unit Marginal costing
Total production cost per unit Activity based costing
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