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ACC2200 - ACF2200 - Introduction to management accounting - S2 2026
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A factory pays $96,000 per year to lease a production machine. The machine can produce up to 24,000 units per year. Production increases from 12,000 units to 16,000 units, with no change in the annual lease payment.
Which statement is correct?
A delivery company pays:
a fixed vehicle tracking-system fee of $2,000 per month, plus
$0.15 for every kilometre travelled.
Which statement best describes this cost?
| Cost | Amount |
|---|---|
| Flour and other ingredients used in bread production | $84,000 |
| Wages of bakery employees directly producing the bread | $56,000 |
| Salary of the production manager | $18,000 |
| Depreciation on bakery production equipment | $12,000 |
| Electricity used in the production facility | $9,000 |
| Salary of the company's sales manager | $15,000 |
| Advertising and social media promotion | $8,000 |
| Delivery costs for transporting finished bread to supermarkets | $6,000 |
| Depreciation on head-office equipment | $4,000 |
The bakery produced 40,000 packages of bread during September, of which 32,000 packages were sold.
What is the total product cost incurred during September?