快速查题-ACCA英国注册会计师试题

Jetson Co produces three products:  

Labour is restricted to 120,000 hours. In order to meet demand, Jetson is considering using a subcontractor to produce the products that cannot be produced in-house due to the restriction on labour hours. The subcontractor has prepared the following quote:  

George = $55 

Elroy = $66 

Jane = $82 

Calculate the number of units of George that will be manufactured in-house. 

 Your company regularly uses material X and currently has in inventory 500 kg for which it paid $1,500 two weeks ago. If this were to be sold as raw material, it could be sold today for $2.00 per kg. You are aware that the material can be bought on the open market for $3.25 per kg, but it must be purchased in quantities of 1,000 kg. 

What is the relevant cost of 600 kg needed to be used in a job for a customer? 

 A company is launching a new product. In order to manufacture this new product, two types of labour are required. The new product required 5 hours of skilled labour and 5 hours of semi skilled. 

A skilled employee is available and is currently paid $10 per hour. A replacement would, however, have to be obtained at a rate of $9 per hour for the work that would otherwise be done by the skilled employee. The current rate for semi skilled workers is $5 per hour and an additional employee would be appointed for this work. 

What is the relevant cost of labour to be used in making one unit of the new product? 

An organisation is considering the costs to be incurred in respect of a special order opportunity. The order would require 1,250 kgs of material D, that is readily available and regularly used by the organisation on its normal products.   

There are 265 kgs of material D in inventory which cost $795 last week. The current market price is $3.24 per kg. Material D is normally used to make product X. Each unit of X requires 3 kgs of material D, and if material D is costed at $3 per kg, each unit of X yields a contribution of $15.

 What is the relevant cost of material D to be included in the costing of the special order? 

 H has in inventory 15,000 kg of M, a raw material which it bought for $3/kg five years ago, for a product line which was discontinued four years ago. M has no use in its existing state but could be sold as scrap for $1.00 per kg.  One of the company’s current products (HN) requires 4 kg of a raw material, available for $5.00 per kg.  M can be modified at a cost of $0.75 per kg so that it may be used as a substitute for this material. However, after modification, 5 kg of M is required for every unit of HN to be produced. 

 H has now received an invitation to tender for a product which could use M in its present state. 

What is the relevant cost per kg of M to be included in the cost estimate for the tender? 

In order to utilise some spare capacity, K is preparing a quotation for a special order which requires 2,000 kgs of material J.  

K has 800 kgs of material J in inventory (original cost $7.00 per kg). Material J is used in the company’s main product L. Each unit of L uses 5 kgs of material J and, based on an input value of $7.00 per kg of J, each unit of L yields a contribution of $10.00. 

 The resale value of material J is $5.50 per kg. The present replacement price of material J is $8.00 per kg. Material J is readily available in the market. 

What is the relevant cost of the 2,000 kgs of material J to be included in the quotation? 

 A company is calculating the relevant cost of the material to be used on a particular contract. The contract requires 4,200 kgs of material H and this can be bought for $6.30 per kg. The company bought 10,000 kgs of material H some time ago when it paid $4.50 per kg. Currently 3,700 kgs of this remains in inventory.  The inventory of material H could be sold for $3.20 per kg.  

The company has no other use for material H other than on this contract, but it could modify it at a cost of $3.70 per kg and use it as a substitute for material J.  Material J is regularly used by the company and can be bought for $7.50 per kg. 

What is the relevant cost of the material for the contract? 

Ace Limited is considering a new project that will require the use of a currently idle machine. The machine has a current book value of $12,000 and a potential disposal value of $10,500 (before $200 disposal costs) and hence has been under depreciated by $1,500 over its life to date.  If the machine is to be fit for purpose on the new project it will have to be relocated at a cost of $500 and refitted at a further cost of $800.  

What is the relevant cost of using the machine on the new project? 

 Blunt is considering a new project but is unsure how much overhead to include in the calculations to help him decide whether or not to proceed. Existing fixed overheads are absorbed at the rate of $8 per hour worked.  Blunt is certain that the project will involve an incremental 500 labour hours.  

The project will involve extra machine running costs and these variable overheads cost him $4 per hour. The number of extra machine hours is expected to be 450 hours. The difference between this figure and the 500 labour hours above is expected idle time.  

The project will require a little more temporary space that can be rented at a fixed cost of $1,200 for the period of hire. This overhead is not included in the fixed overhead absorption rate above. 

What is the overhead to be charged against the project decision? 

Cleverclogs is short of labour for a new one-off project needing 600 hours of labour and has choices as to where to source this.  He could hire new people temporarily from an agency at a cost of $9 per hour.  Alternatively he could recruit new temporary staff at a fixed cost of advertising of $1,200 but then only pay $6 per hour for the time.  He could also redirect some staff from existing work who are currently paid $7 per hour and who make sandals that generate a contribution of $3 per hour after all variable costs. Sandals are a good selling product and Cleverclogs will lose the production and the related sales whilst staff is working on the new one-off project. 

What is the relevant cash flow?