The following details are available for a company's production overhead costs at different levels of activity:
The company uses the high-low method to calculate its budgeted production overhead costs.
What is the budget for production overhead costs at an activity level of 8,500 units?
Give your answer as a whole number.
A company operates a standard costing system.
The company combines two raw materials in a process in order to produce a finished product. During month 6 the direct material mix variance was favourable and the direct material yield variance was adverse.
Which of the following statements would explain both of the variances?
The following statements relate to the advantage(s) that linear regression has over the high-low method in the analysis of cost behaviour:
Which statement(s) is/are true?
A company makes a product using two materials, X and Y.
The standard materials required for one unit of the product are:
What is the materials yield variance?
Give your answer as a whole number.
A musical instrument manufacturing company is considering a new project that will require 1000 kg of wood. They have 700 kgs of wood in stock which was purchased last year for £4 per kg. The wood in stock can be
sold back to the supplier for £5 per kg. The wood in stock will have to be replaced if it is used. The current purchase price of wood is £8 per kg.
Using this information, what is the relevant cost of wood for the manufacturers decision on this project?
Which THREE of the following are never relevant costs for short-term decision making?
Which of the following statements about relevant costs is correct?
A company manufactures a machine. The machine is made from two types of raw material and is assembled in a factory using skilled labour. The engine for the machine is purchased from an outside supplier.
The following costs relate to the manufacture of one machine:
What is the finished goods inventory valuation for one machine using throughput costing?
A decision maker that makes decisions using the minimax regret criterion would be classified as:
The performance of a production manager is assessed on efficient use of materials during the production process.
Actual data and data from the fixed budget for Month 4 are as follows:
What figures should be compared in order to assess the production manager's performance for Month 4?
