QUESTION38.

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 Chinese Dragon?

QUESTION63.

BRIOCHE DOREE plans to sell 200,000 donuts at €4 per unit. The margin rate on

variable costs is 25%. If BRIOCHE DOREE is at the break-even point at this

level of turnover,

QUESTION6. In the full cost method, the

analysis centers or cost pools are:

QUESTION33. Inground Sprinkler Supply

sells automatic watering systems for large and small gardens. The company

decided to adopt an Activity-Based Costing system. Last year, the company

recorded €1,000,000 in overhead costs related to the following activities.

The activities for large and small garden systems are as follows:

Based on

this method, what is the total amount of overhead that Inground Sprinkler

Supply should allocate to large garden systems?

QUESTION12. For distribution costs, the MOST LIKELY  cost driver is usually…

QUESTION 76.

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 Production department?

QUESTION17. Which of the following

statements is most likely to be

QUESTION2. Which of the following

statements is the

QUESTION61.

The company MYSON sells 100,000 vacuum cleaners at €280 per unit. The cost

structure is as follows; variable unit cost €250, fixed production costs:

€2,000,000. Its customer TASCORAMA is ready to order 20,000 additional vacuum

cleaners at 260€, an order that is compatible with MYSON's current industrial

capacity. 

Do you take the order at this price?

QUESTION 73. Mr. Cloarec is the manager of

the restaurant "A la Bonne Crêpe de Quimper".

To solve its

profitability problems, he hires you as a management controller.

In 2023, the creperie recorded an operating loss of

-€25,700 and Mr. Cloarec wonders if it would be possible to break even for his

creperie in the future.

In 2023, the creperie served 5,000 pancakes for a

total cost of €55,700.

Specifically, the main cost items are:

* Basic products (buckwheat pancakes, eggs, ham,

lettuce...):               17,925 €

* Personnel costs:                                                                               28,400

€

* Depreciation (equipment and materials):                                           2,760

€

* Disposable dishes (cutlery, glasses, napkins,

packaging, bags, etc.)      1,380 €

* Miscellaneous costs (administration, heating,

electricity):                   5,235 €

Mr. Cloarec considers that the costs of food and

disposable dishes are expenses that vary in proportion to the number of meals

served. Depreciation and miscellaneous costs are fixed costs. As for personnel

costs, half are fixed costs, the other half can be considered as variable

costs.

The restaurant charges an average of €6 per pancake

served.

What is the

break-even point in turnover of the creperie?