快速查题-ACCA英国注册会计师试题

A company uses its direct labour workforce to make a product for which the sales price and unit cost are as follows.  

                                                                                             $ 

Selling price                                                                     80 

Direct materials                                                              10 

Direct labour (2 hours)                                                  20 

Variable overheads (2 hours)                                        4 

Fixed overheads (2 hours)                                           30 

The workforce is operating at full capacity and it is not possible to obtain any additional labour hours in the near future. A customer has asked the company to perform a special job that would require 20 hours of direct labour time. 

What would be the relevant cost of diverting labour from its existing work to perform the special job for the customer? 

 X plc intends to use relevant costs as the basis of the selling price for a special order: the printing of a brochure. The brochure requires a particular type of paper that is not regularly used by X plc although a limited amount is in X plc’s inventory which was left over from a previous job. The cost when X plc bought this paper last year was $15 per ream and there are 100 reams in inventory. The brochure requires 250 reams. The current market price of the paper is $26 per ream, and the resale value of the paper in inventory is $10 per ream. 

What is the relevant cost of the paper to be used in printing the brochure? 

 Jorioz Co makes joint products X and Y. $120,000 joint processing costs are incurred. 

At the split-off point, 10,000 units of X and 9,000 units of Y are produced, with selling prices of $1.20 for X and $1.50 for Y. 

The units of X could be processed further to make 8,000 units of product Z. The extra costs incurred in this process would be fixed costs of $1,600 and variable costs of $0.50 per unit of input. 

The selling price of Z would be $2.25. 

What would be the outcome if product X is further processed? 

In a decision about whether or not to sell a joint product at the split-off point or after further processing, joint costs are relevant. 

 What are the relevant costs in a make or buy decision? 

A company wants to decide whether to make its materials in-house or whether to sub-contract production to an external supplier. In the past it has made four materials in-house, but demand in the next year will exceed in-house production capacity of 8,000 units. All four materials are made on the same machines and require the same machine time per unit: machine time is the limiting production factor. The following information is available. 

If a decision is made solely on the basis of short-term cost considerations, what materials should the company purchase externally? 

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?