Week 1 - this is practice question. Please have a look on it,. PDF

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this is practice question.
Please have a look on it,....

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Thi Thao Anh Nguyen

45788782

ACCG2000

Week 1 – Introduction & Basic cost concepts and terms Chapter 2:

2.10 a. Direct - Cost of food served b. Direct - Chef’s salary …. c. Indirect – Cost of maintaining common areas … d. Indirect – Security services for the….. 2.22 Cost No. 1 2 3 4 5 6 7 8 9 10 11 12

(a)

Product/ period

cost Period cost Product cost Product cost Period cost Product cost Product cost Product cost Period cost Period cost Product cost Period cost Period cost

(b)

Variable/ Fixed

cost? Variable cost Fixed cost Fixed cost Variable cost Variable cost Fixed cost Variable cost Variable cost Variable cost Variable cost Fixed cost Fixed cost

(c) Manufacturing/ nonmanufacturing cost non- manufacturing cost Manufacturing cost Manufacturing cost Non- manufacturing cost Manufacturing cost Manufacturing cost Manufacturing cost Manufacturing cost Non- manufacturing cost Manufacturing cost Non- manufacturing cost Non- manufacturing cost

2.24 a- 5 b- 0 c- 0 d - 1, 4 e- 6 f - 3, 2 g- 0

2.26 1. Total wages = $30 x 38 + $35 * 10 = $1490 2. Total overtime premium = $35 x 10 = 350 3. Total wages for the week is direct labour cost = $30 x 38 = $1140

Thi Thao Anh Nguyen

45788782

ACCG2000

Overhead cost = Overtime premium + idle time = $350 + 0= $350. This is because among 48 hours, there are only 38 hours is normal working time. This is because the overtime was caused by all the production scheduled during the day, not that particular product. 4. During the idle time when employees are non-productive, caused by a sudden fault in machine or equipment, power failure, or new setups of production run, normal working hours is considered as indirect labour cost.

2.33 1 - (b) period cost. 2 - (a) product cost; (d) prime cost; (e) direct material cost. 3 - (a) product cost; (g) manufacturing overhead; (c) conversion cost. 4 - (b) period cost. 5 - (a) product cost; (c) conversion cost; (d) prime cost; (f) direct labour cost. 6 - (a) product cost; (d) prime cost; (e) direct material cost. 7 - (a) product cost; (g) manufacturing overhead; (c) conversion cost. 8 - (b) period cost. 9 - (a) product cost, (g) manufacturing overhead; (c) conversion cost. 10 - (b) period cost. 11 - (a) product cost; (g) manufacturing overhead; (c) conversion cost. 3.26 1. Highest activity level: 61,500 Lowest activity level: 31,500 Variable cost per unit =

Difference∈cost level Difference∈activity level

=

36150 −33150 61500 −31500

Total cost = Fix cost + Variable cost per unit x no of units 3650 = Fix cost * 0.1 x 61500 FC = 30000 For every additional labor hour, total overhead cost will increase by $0.1 Cost function: Total cost = 30000 + 0.1 x number of machine hours 2. Total cost = 30000 + 0.1 x 39000 = 33900

= 0.1

Thi Thao Anh Nguyen

45788782

ACCG2000...