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Management Accounting Sec: ALL 01

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Rydingsward, Inc., has done a cost analysis for its production of reflectors. The following activities and cost drivers have been developed:

Activity

Cost Formula

Maintenance

£15 000 + £4 per machine hour

Machining

£35 000 + £1 per machine hour

Inspection

£60 000 + £750 per batch

Setups

£1 000 per batch

Purchasing

£50 000 + £10 per purchase order

 

What is the budgeted maintenance cost if there was production of 50 000 reflectors that will require 8000 machine hours, 25 batches and 15 000 purchase orders?

 

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The contribution margin at the break-even point?

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Fixed cost per unit is £9 when 20 000 units are produced and £6 when 30 000 units are produced. What is the total fixed cost when nothing is produced?

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When a company sells more units than the break-even point?

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Information about two products is as follows

 

Product C

Product D

Selling price per unit

£20

£25

Variable costs per unit

  11

  18

Contribution margin per unit

£ 9

£ 7

The firm expects 60 per cent of its sales (in units) to be Product C (a sales mix of 6:4). Fixed costs are expected to be £82 000. Break-even in units would be?

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In a traditional manufacturing company, product costs include?

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Semi-variable costs contain both?

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Assuming all other things are the same, variable cost per unit must have ____ if there was an increase in the break-even point?

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Which of the following costs is a variable cost?

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Whether a cost is fixed or variable depends on the time horizon. In the long run, all costs are?

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