QUESTION40.

Aldebaran designs,

produces and markets two types of fireworks: Chinese Dragon and Space Tornado.

They are made from chemical components assembled in two separate workshops,

Workshop 1 and Workshop 2.

The production parameters of these two products are given below:

Aldebaran's indirect costs are divided into three departments:

Quality

: this

department is responsible for quality control on the various products. It is

considered that the more products are manufactured, the more quality controls

there will be, the more work the department will have. The allocation base

chosen for this center is the total number of quality checks performed. The

total indirect costs of the department are $182,000.

Workshop 1

: this first workshop is responsible for a first assembly of the

fireworks. The allocation base chosen to allocate the indirect costs of

Workshop 1 to the products is the total number of machine hours. The total indirect

costs of Workshop 1 are $126,000.

Workshop 2

: this second workshop finalizes the assembly of the fireworks. In this

Workshop 2, the allocation base chosen to allocate indirect costs to products

is the total number of hours of labor. The total indirect costs of Workshop 2

are $51,000.

In July, we produced and sold 1,000 Chinese Dragons and 2,000 Space

Tornados.

Calculate the unit cost of the allocation base for the Quality

department.

QUESTION11. A cost object

corresponds

to:

QUESTION22. If the unit selling price is

$500, the unit variable cost is $300, and the total costs are $300,000,

QUESTION 78.

PremierBed manufactures and markets sheets and duvet cover for the hospitality

industry. For the month of June N, the indirect costs of the main analysis

centres are distributed as follows.

Indirect cost

breakdown table

You have the following data.

Sheet sales: $740,000

Cost of producing sheets: $503,200

Direct labor hours for the manufacture of sheets:

4,130 hours

Consumable purchases: 200 kg at $6 per kg

Duvet cover sales: $262,400

Production cost of duvet covers: $178,432.

Direct labor hours for duvet covers: 1,470

h

Fabric purchases: 5,000 m for $35,000.

Thread spools purchases: 100 spools at

$5.20 each.

What is

the cost of an allocation base unit for the After Sales department?

QUESTION31. Tiong Bahru provided the

following information for the past month:

Sales                            $40,000

Variable costs             $14,000

Fixed costs                   $10,000

Operating income        $16,000

If sales halve in the following month, what is the expected operating

result?

QUESTION30. A company anticipates 100,000 €

in sales during the year, the average selling price being 10 €. The fixed costs

are 40,000 € and the variable expenses are estimated at 30,000 €. By

subcontracting, the company can reduce its variable costs to 20,000 € for the

same amount of sales. 

QUESTION26. K2 is a business law firm specializing in arbitration. Until

2023, its management accounting had only one direct expense item (lawyers'

remuneration) and a single analysis center (Overhead Expenses). The allocation

base was the cost of the lawyers' remuneration (per euro). K2 customers are

charged 120% of the total cost of the contracts.

Lawyers'

remuneration: € 100,000,000

Overheads:

€ 190,000,000

What is the unit cost of the allocation base

in the "Overhead Expenses"  center?

QUESTION52.

Ingenico is an IT services company. The analysis of the profitability of each

mission is carried out based on a full cost of the assignment which includes

the direct cost of the consultants invoiced according to their seniority and a

share of the indirect costs of two analysis centres.

The Administrative Centre

: €362,600  per year. The allocation base is

the number of employee hours invoiced to customers.

The Computer Centre

: €148,000 per year. The

costs of this center are allocated in proportion to the lines of code made for

customers.

For year (N), Ingenico invoiced 25,900 hours of

consultants and created 370,000 lines of code.

Ingenico's management controller

is interested in the profitability of two missions: Master and Class, the

parameters of which are given below.

In addition, the number of lines of code for Master is

2,000 and 3,000 for Class.

How much of the Administrative Center's indirect costs

are allocated to Class?

QUESTION39.

Aldebaran designs,

produces and markets two types of fireworks: Chinese Dragon and Space Tornado.

They are made from chemical components assembled in a single workshop.

The production parameters of these two products are given below:

The unit cost of chemical components is $1. Direct labor costs $4 per

hour in the shop. The operating costs of the machines are $3.5 per machine hour

in the workshop.

The Chinese Dragon is sold for $250 each while the Space Tornado is sold

for $350 each. Distribution is carried out by an import-export company which

receives a 5% commission on the sales made.

In July, we produced and sold 1,000 Chinese Dragons and 2,000 Space

Tornados.

What is the unit margin in $ of a Space Tornado?

QUESTION34.

Aldebaran designs,

produces and markets two types of fireworks: Chinese Dragon and Space Tornado.

They are made from chemical components assembled in workshop 1 and then in

workshop 2.

The production parameters of these two products are as follows:

The unit cost of chemical components is $1. Direct labor costs $4 per manual

hour in Workshop 1 and $4.5 per manual hour in Workshop 2.

The operating costs of the machines are $3.5 per machine hour in Workshop

1 and $2.5 per machine hour in Workshop 2.

In July, we produced and sold 1,000 Chinese Dragons and 2,000 Space

Tornados.

What is the direct unit cost of a Chinese Dragon?