CIMA Advanced Management Accounting P2 Question # 27 Topic 3 Discussion

CIMA Advanced Management Accounting P2 Question # 27 Topic 3 Discussion

P2 Exam Topic 3 Question 27 Discussion:
Question #: 27
Topic #: 3

A company makes three products, E, F and G. Total overheads for the year are expected to be $1.2 million, with the following split between cost pools:

Cost driver information has been estimated as follows:

P2 Question 27

The company plans to make 10,000 units of product E in the year, with an expected direct cost of $0.60 per unit. This annual production of product E is expected to require 20 quality inspections, 28 purchase requisitions, and 400 kilogrammes of materials.

What is the overhead cost per unit of product E?


A.

$0.10


B.

$0.70


C.

$3.57


D.

$4.17


Get Premium P2 Questions

Contribute your Thoughts:


Chosen Answer:
This is a voting comment (?). It is better to Upvote an existing comment if you don't have anything to add.