2. Cost and management accounting (AS Level)
A section of Accounting, 9706
Listing 10 of 903 questions
Quango Ltd produces four types of lamp – Platinum, Gold, Silver and Bronze. Unit selling prices and costs are as follows: Product Platinum Gold Silver Bronze $ $ $ $ Selling price Costs Direct materials Direct labour Overheads Direct material and Direct labour are variable costs. Overheads are 40% variable and 60% fixed. Quango’s intention was to produce and sell the following quantities during the year ended 31 May 2005. Product Quantity Platinum Gold Silver Bronze REQUIRED A statement, in marginal costing format, of profitability for each product, and in total. Use It was then discovered that fixed overheads were likely to rise by 8% and the total amount available to pay overheads could not be increased. REQUIRED A statement, taking into account the possibility of the increase in fixed overheads, and maximising profit, showing the quantity of each product to be produced. A statement in marginal costing format of profitability for each product and in total, based on your answer to .
9706_s05_qp_2
THEORY
2005
Paper 2, Variant 0
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Examiner's Use Hoi Poloi plc makes 3 types of filing cabinet, four-drawer, three-drawer and two-drawer. The business uses general purpose machines which are equally suitable to be used in the manufacture of all three products. Data for the year ended 30 April 2005 was as follows: four three two drawer drawer drawer $ $ $ Total sales 410 400 123 900 427 500 Total variable costs 304 000 88 500 285 000 Allocated fixed costs 98 000 48 000 135 000 Profit (Loss) 8 400 (12 600) 7 500 It had been proposed that the three-drawer cabinet be discontinued, as it was making a loss. REQUIRED State whether this proposal should have been agreed, giving your reasons. Sales and cost data for the year ended 30 April 2006 were as follows: four three two drawer drawer drawer Sales in units 15 000 6 000 30 000 Raw materials $12 $8 $4 Variable overheads $3 $2 $2 Unit contribution $7 $6 $5 Machine hours per unit 0.5 0.5 0.4 Machine operators are paid $10 per hour. Allocation of fixed costs $98 000 $48 000 $135 000 For Examiner's Use REQUIRED Calculate the selling price per unit for each product. Calculate for each product the break-even point in both units and sales value. For Examiner's Use Calculate for each product the profit or loss for the year ended 30 April 2006. For Examiner's Use To try to improve profits for the year ending 30 April 2007, it has been suggested that a better quality, more easily worked, raw material be purchased. This would increase the cost of raw materials by five percent (5 %) but would offer savings of ten percent (10 %) on labour. Sales and other costs would remain unchanged. REQUIRED Calculate for each product and in total the profit or loss if this suggestion is put into effect.
9706_s06_qp_2
THEORY
2006
Paper 2, Variant 0
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Questions Discovered
903