The following cost details relate to one unit of product Zen. (£) Variable materials Variable labour Variable production overheads Fixed production overhead Variable selling overhead Fixed selling overhead Total cost 20.40, 18.20, 3.60 ,25.88 ,15.58 ,7.56 ,91.22 In a marginal costing system, what would the value of a closing inventory of 5,000 units of product Zen be?
The following cost details relate to one unit of product Zen. (£) Variable materials Variable labour Variable production overheads Fixed production overhead Variable selling overhead Fixed selling overhead Total cost 20.40, 18.20, 3.60 ,25.88 ,15.58 ,7.56 ,91.22 In a marginal costing system, what would the value of a closing inventory of 5,000 units of product Zen be?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The following cost details relate to one unit of product Zen. (£)
Variable materials
Variable labour
Variable production
Total cost
20.40, 18.20, 3.60 ,25.88 ,15.58 ,7.56 ,91.22
In a marginal costing system, what would the value of a closing inventory of 5,000 units of product Zen be?
![ARDEN
ARDEN
ENIVERSITY
ENIVERSITV
4.
6.
Which of the following describes decision making at the tactical or functional level?
Rangers plc is preparing its production budget for product A for the forthcoming
year. Budgeted sales for product D are estimated to be 4,800 units.
a) Senior management will need to make long-term decisions about the
future of the whole business. Therefore, strategic decisions will be made
about which markets the business is to operate in, whether to bid to take
Opening inventories are 450 units and the company wants to reduce its
inventories by 12% by the end of the year.
over a competitor, etc.
b) These decisions focus largely on the day-to-day running of the business
and may be made by lower-level managers, say at the branch level. They
may concern inventory levels, staffing rotas, etc.
c) None of the above.
The budgeted number of units of product D to be produced is,
a)
b)
5,250 units
4,350 units
4,296 units
d) These decisions are made in focusing on the medium-term future of the
business, say looking at the 12-18-month pricing strategy for a product,
deciding what products to stock over the summer months, etc. They tend
to be focused on particular business units or departments.
c)
d)
4,746 units
5.
7.
The following cost details relate to one unit of product Zen.
Dakota Co. has prepared the following flexible budget for the coming year. The
budgeted level of activity is 5,000 units.
(£)
Variable materials
20.40
18.20
3.60
£
Variable labour
Sales
Direct material
Variable production overheads
Fixed production overhead
Variable selling overhead
Fixed selling overhead
Total cost
25.88
15.58
Z.56
91.22
Direct labour
Variable overheads
Fixed overheads
Profit
125,000
37,500
30,000
15,000
20,000
22,500
In a marginal costing system, what would the value of a closing inventory of 5,000
units of product Zen be?
If the budget is flexed to a level of activity of 7,500 units, what would be the budgeted
total costs be?
a)
b)
c)
d)
£288,900
£211,000
£193,000
£456,100
a)
b)
c)
d)
£102.500
£110,000
£143,750
£126,000
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Transcribed Image Text:ARDEN
ARDEN
ENIVERSITY
ENIVERSITV
4.
6.
Which of the following describes decision making at the tactical or functional level?
Rangers plc is preparing its production budget for product A for the forthcoming
year. Budgeted sales for product D are estimated to be 4,800 units.
a) Senior management will need to make long-term decisions about the
future of the whole business. Therefore, strategic decisions will be made
about which markets the business is to operate in, whether to bid to take
Opening inventories are 450 units and the company wants to reduce its
inventories by 12% by the end of the year.
over a competitor, etc.
b) These decisions focus largely on the day-to-day running of the business
and may be made by lower-level managers, say at the branch level. They
may concern inventory levels, staffing rotas, etc.
c) None of the above.
The budgeted number of units of product D to be produced is,
a)
b)
5,250 units
4,350 units
4,296 units
d) These decisions are made in focusing on the medium-term future of the
business, say looking at the 12-18-month pricing strategy for a product,
deciding what products to stock over the summer months, etc. They tend
to be focused on particular business units or departments.
c)
d)
4,746 units
5.
7.
The following cost details relate to one unit of product Zen.
Dakota Co. has prepared the following flexible budget for the coming year. The
budgeted level of activity is 5,000 units.
(£)
Variable materials
20.40
18.20
3.60
£
Variable labour
Sales
Direct material
Variable production overheads
Fixed production overhead
Variable selling overhead
Fixed selling overhead
Total cost
25.88
15.58
Z.56
91.22
Direct labour
Variable overheads
Fixed overheads
Profit
125,000
37,500
30,000
15,000
20,000
22,500
In a marginal costing system, what would the value of a closing inventory of 5,000
units of product Zen be?
If the budget is flexed to a level of activity of 7,500 units, what would be the budgeted
total costs be?
a)
b)
c)
d)
£288,900
£211,000
£193,000
£456,100
a)
b)
c)
d)
£102.500
£110,000
£143,750
£126,000
Page 4 of 16
[88]
Page 5 of 16
[88]
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