快速查题-ACCA英国注册会计师试题

 The following statements have been made about activity-based costing. 

(1) Unlike traditional absorption costing, ABC identifies variable overhead costs for allocation to product costs.  

(2) ABC can be used as an information source for budget planning based on activity rather than incremental budgeting. 

Which of the above statements is/are true? 

 The following statements have been made about ABC and cost drivers. 

(1) A cost driver is any factor that causes a change in the cost of an activity.

 (2) For long-term variable overhead costs, the cost driver will be the volume of activity. 

(3) Traditional absorption costing tends to under-allocate overhead costs to low-volume products. 

Which of the above statements is/are true? 

 The following statements have been made in relation to activity-based costing: 

(1) A cost pool is an activity which consumes resources and for which overhead costs are identified and allocated. 

(2) The overhead absorption rate (OAR) is calculated in the same way as the absorption costing OAR, and the same OAR will be calculated for each activity. 

Which of the above statements is/are true? 

 The ABC Company manufactures two products, Product Alpha and Product Beta. Both are produced in a very labour-intensive environment and use similar processes. Alpha and Beta differ by volume. Beta is a high-volume product, while Alpha is a low-volume product. Details of product inputs, outputs and the costs of activities are as follows: 

Fixed overhead costs amount to a total of $420,000 and have been analysed as follows:  

                                                                                            $ 

Volume-related                                                         100,000 

Purchasing related                                                  145,000 

Set-up related                                                           175,000

 Using a traditional method of overhead absorption based on labour hours, what is the overhead cost per unit for each unit of product Beta? 

The ABC Company manufactures two products, Product Alpha and Product Beta. Both are produced in a very labour-intensive environment and use similar processes. Alpha and Beta differ by volume. Beta is a high-volume product, while Alpha is a low-volume product. Details of product inputs, outputs and the costs of activities are as follows: 

Fixed overhead costs amount to a total of $420,000 and have been analysed as follows:   

                                                                                  $ 

Volume-related                                               100,000 

Purchasing related                                        145,000 

Set-up related                                                 175,000 

Using Activity Based Costing as method of overhead absorption, what is the overhead cost per unit for each unit of product Alpha? 

 A company makes two products using the same type of materials and skilled workers. The following information is available:  

                                                                         Product A                                  Product B 

Budgeted volume (units)                              1,000                                           2,000

Material per unit ($)                                             10                                                 20

 Labour per unit ($)                                               5                                                  20

 Fixed costs relating to material handling amount to $100,000. The cost driver for these costs is the volume of material purchased. 

General fixed costs, absorbed on the basis of labour hours, amount to $180,000. 

Using activity-based costing, what is the total fixed overhead amount to be absorbed into each unit of product B (to the nearest whole $)? 

 A company is changing its costing system from traditional absorption costing based on labour hours to Activity Based Costing. It has overheads of $156,000 which are related to taking material deliveries.  

The delivery information about each product is below.  

Product:                                                                 X                           Y                         Z  

Total units required                                         1,000                  2,000                   3,000  

Delivery size                                                         200                     400                   1,000  

Total labour costs are $360,000 for 45,000 hours. Each unit of each product takes the same number of direct hours. 

Assuming that the company uses the number of deliveries as its cost driver, what is the increase or decrease in unit costs for Z arising from the change from Absorption Costing to Activity Based Costing? 

DRP Ltd has recently introduced an ABC system. It manufactures three products, details of which are set out below: 

Product:                                                                               D                    R                       P  

Budgeted annual production (units)                        100,000         100,000            50,000  

Batch size (units)                                                                 100                   50                    25  

Machine set-ups per batch                                                    3                      4                     6 

 Purchase orders per batch                                                   2                      1                     1 

 Processing time per unit (minutes)                                    2                       3                    3 

Three cost pools have been identified. Their budgeted costs for the year ending 30 June 2003 are as follows:  

Machine set-up costs                                           $150,000  

Purchasing of materials                                         $70,000  

Processing                                                               $80,000 

What is the budgeted machine set-up cost per unit of product R? 

VPS is a large manufacturing business that is introducing an activity based costing system into its business. VPS ships components via its own logistics operation to its central manufacturing centre in Glasgow from a wide variety of locations. It is attempting to identify the correct cost driver for the cost pool called ‘component handling’. 

Which of the following would be the correct figure to use? 

A company which makes two products, Alpha and Zeta, uses activity-based costing to absorb its overheads. It has recently identified a new overhead cost pool for inspection costs and has decided that the cost driver is the number of inspections.

 The following information has been provided:  

Total inspection costs                                              $250,000  

                                                                                        Alpha                          Zeta 

Production volume (units)                                          2,500                         8,000 

Machine hours per unit                                                   1                                1.5 

Units per batch                                                                500                          1,000 

Inspections per batch                                                      4                                 1 

What is the inspection cost per unit for product Alpha?