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Extra info for CIMA - C01 Fundamentals of Management Accounting: Revision Kit
Direct materials Direct labour: Machinists ($8 per hour) Assemblers ($6 per hour) Total variable cost Selling price per unit Maximum demand (units) Product A $ 70 Product B $ 40 Product C $ 80 48 36 154 32 40 112 56 42 178 $200 3,000 $158 2,500 $224 5,000 Fixed costs are $300,000 per period. hours. The deficiency in machine hours for the next period is 4 A product has the following costs. $ 5 3 7 Direct materials Direct labour Variable overheads Fixed overheads are $10,000 per month. Budgeted sales per month are 400 units.
Hours. The deficiency in machine hours for the next period is 4 A product has the following costs. $ 5 3 7 Direct materials Direct labour Variable overheads Fixed overheads are $10,000 per month. Budgeted sales per month are 400 units. %. The mark-up which needs to be added to marginal cost to allow the product to break even is 5 A company uses limiting factor analysis to calculate an optimal production plan given a scarce resource. The following applies to the three products of the company: Product Direct materials (at $6/kg) Direct labour (at $10/hour) Variable overheads ($2/hour) Maximum demand (units) Optimal production plan I $ 36 40 8 84 2,000 2,000 II $ 24 25 5 54 4,000 1,500 III $ 15 10 2 27 4,000 4,000 How many kg of material were available for use in production?
00 An operating hour in which there are no exceptional events, eg machine breakdowns An hour during which only standard units are made The amount of work achievable in an hour, working at standard efficiency levels An hour during which only standard hourly rates are paid to labour Wood Co manufactures garden sheds, garden tables and workbenches. In order to monitor trends in productivity they measure output in terms of standard hours. Actual results for the first week of October are shown below.