QUESTION24. ESC is a company in which the

fixed costs are estimated at 540,000€. It plans to sell 100,000 Beta products

for which the variable costs are €10 per unit and the selling price is €20 per

unit. As a result, ESC plans to allocate €400,000 in fixed costs to Beta (out

of the total €540,000 in fixed costs).

What will be ESC's profit on Beta sales if they reach this level of

production?

QUESTION1. Which of the following

statements is the

QUESTION65. 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. 

Should SIEGEAUTO stop producing Seat (A) in-house?

QUESTION27. Byron Bay Elite Laundry (BBEL)

specializes in cleaning two types of clothing: coats and pants.

For coats, the

variable cost of cleaning BBEL is $6, and the consumer is charged $9.

For pants, the

variable cleaning cost for BBEL is $10 and the consumer is charged $12. BBEL's

fixed costs are $600 per month for each type of garment (made up of the costs

of BBEL renting two machines). BBEL's total revenue is $3 million.

Calculate the

unit contribution margin for cleaning coats and pants.

QUESTION 81.

Salomon manufactures and distributes running shoes.

To calculate the costs of its products, the company has set up an ABC

costing system and has drawn up the following two tables for this purpose. The

study that you are being asked to carry out concerns the Genysis model.

Indirect costs concern the following three

departments: Purchasing, Production and Administration, each with a number of

different activities.

What is the amount of

indirect costs allocated to the Genysis model according to the

QUESTION21. Company (Y) sells a product at

$6.25 per unit. Variable costs are $3.75 per unit. The breakeven point of (Y)

is 35,000 units.

QUESTION42.

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 in Workshop 2.

QUESTION46.

Vasco manufactures tubes for industry. The calculation of the full cost is

obtained by adding a direct cost item – the cost of components – and indirect

costs calculated via an ABC system, the parameters of which are presented

below.

TUB1 and

TUB2 are two products in Vasco's catalogue. The cost of components for TUB1 is

€250  per unit and that of TUB2 is

€100  per unit.

What is

the full cost of TUB1?

QUESTION

75. 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 Purchasing department?

QUESTION47.

Vasco manufactures tubes for industry. The calculation of the full cost is

obtained by adding a direct cost item – the cost of components – and indirect

costs calculated via an ABC system, the parameters of which are presented

below.

TUB1 and

TUB2 are two products in Vasco's catalogue. The cost of components for TUB1 is

€250  per unit and that of TUB2 is

€100  per unit.

How many

indirect costs are allocated to TUB2?