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Management Accounting Sec: ALL 01

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A purchasing agent has two potential firms from which to buy materials for production. If both firms charge the same price, the material cost is a(n)?

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

Activity

Cost Formula

Maintenance

£11 000 + £0.11 per machine hour

Machining

£25 000 + £0.50 per machine hour

Setups

£50 per batch

Purchasing

£200 + £45 per purchase order

Following are the actual costs of producing 85 000 stickers: 5000 machine hours; 10 batches; 20 purchase orders

Maintenance

£11 500

Machining

28 300

Setups

550

Purchasing

1 000

 

 

What is the budgeted cost per sticker?

 

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Which of the following statements is TRUE about fixed and variable costs?

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Jiggy Company plans to sell 33 000 units during the month of May. The company plans to have 2500 units on hand at the end of the month. If 1200 units are on hand on May 1, how many units must be produced during May?

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

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Which of the following costs is NOT relevant to a make-or-buy decision?

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Dirth Company sells only one product at a regular price of £7.50 per unit. Variable expenses are 60 per cent of sales and fixed expenses are £30 000.

What is the monetary sales level required to break even at the price of £7.50?

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Variable costs,?

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The following information is provided:

Sales price per uni

£70

Variable cost per unit

£45

Fixed costs

£50 000

Expected sales

5000 units

The margin of safety is?

 

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An unfavourable materials price variance with a favourable materials usage variance would most likely be the result of?

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