QUESTION56.

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.

 What is the direct cost of the Class mission?

QUESTION18. Which of the following

statements is most likely to be

QUESTION70. A company's sales for September are

€800,000 and its variable costs are €500,000. Its break-even point is €300,000.

The result in March is €112,500.

QUESTION64.

SIEGEAUTO produces seats for the automotive industry. It produces 10,000 units

of the Seat (A) which has a variable unit cost of €150. The fixed production

costs made up of the management of the plant are €200,000. The purchasing

department assumes that, as this product is not strategic, the manufacture of

the seat (A) may be outsourced to a subcontractor who offered to sell it to

SIEGEAUTO at €160 per unit.

In this case, it could reuse the freed-up capacity and produce another

piece of equipment that should generate €150,000 in profit. 

Should

SIEGEAUTO stop producing Seat (A) in-house?

QUESTION51.

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

mission is carried out on the basis of 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.

What is the amount of indirect costs of the

Administrative Center allocated to Master?

QUESTION 79.

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 General Administration department?

QUESTION7. Secondary (or ancillary) cost

centers are:

QUESTION60. In

a company, the monthly overhead costs of production are the depreciation costs

of the assembly machines. They amount to $100,000. The allocation base used to

allocate costs on products is the number of machine hours. The production level

for the month is estimated at 10,000 machine hours.

What is the level of overhead production costs to be allocated per unit

to Product 1 and 2, given that Product 1 requires 10 machine-hours per unit and

Product 2 requires 20 machine-hours per unit?

QUESTION35.

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 given below:

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 Space Tornado?

QUESTION29. Bedok Big Baos sells only one product.

8,000 units were sold, generating $80,000 in revenue, $20,000 in variable

costs, and $10,000 in fixed costs.