Question

Question 02: Provide brief answers to any 5 of the following:

1. Name any 2 physical production flow patterns associated with process costing.

2. The budgeted factory cost of Gina Pharmaceuticals is $560,000. The prime cost is estimated to be $395,000. Budgeted machine hours are 6,600 while actual hours used were 6,000.

REQUIRED: Calculate the following:

1. Budgeted FOH rate.

2. Applied FOH.

3. Briefly explain the function of EPQ schedule.

4. Lenora Soaps have a contribution margin of $2. Associated fixed costs are $3,500. Variable costs are $ 0.9.

REQUIRED: Calculate the breakeven point in $ sales.

5. List down the 3 methods of allocating joint costs.

6. Enumerate any 3 direct departmental costs.

Answer 1

1)flow of costs from raw materials into work in process and work in process to finished goods
2)
a)Budgeted FOH rate=budgeted cost/budgeted machine hrs
=560000/6600=84.85 hrs
applied FOH= Budgeted FOH rate*actual hrs
=84.85*6000=509100

4)Breakeven point in sales= Fixed costs/CM ratio
CM = (sales-variable)
2=sales-0.9
sales=2.9
CM ratio=2/2.9=68.97%
=3500/68.97%
=5075

5) market based, physical measures and in this Average unit cost method and weighted average methid

6)