Overhead Costs – NBC Institute

MI – Mar-Jul 2020 – L1 – SA – Q5 – Costing Techniques

Identify the effect of increasing automation that is not related to costing.

Question

Which of the following is NOT an effect of increasing automation from a costing viewpoint?

A. Reduction in direct labour costs per unit
B. Reduction in overhead cost
C. Change in cost structures
D. Makes labour hours increasingly unsuitable as an overhead absorption base
E. Fewer production workers and more support staff

Answer:

Answer

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Tags: Automation, Cost Management, Costing Techniques, Overhead Costs
Level: Level 1

Topic: Costing Techniques
Series: MAR/JULY 2020

MI – May 2016 – L1 – SB – Q6b – Costing Methods

Application of Activity-Based Costing (ABC) to allocate overhead costs and calculate cost per unit for products X, Y, and Z.

Question

Quick Company Limited manufactures three products X, Y, and Z. Production and related costs have been budgeted for a period as follows:

PRODUCT	X	Y	Z
No. of Units	40,000	30,000	10,000
Direct Materials	600,000	300,000	160,000
Direct Labour	400,000	150,000	200,000
Machine hours	10,000	6,000	4,000

Overhead costs:

Overhead Type	Amount (₦)
Purchasing function	180,000
Machine related costs	114,000
Set-up cost	132,000
Storage	48,000
Materials handling	88,000
Inspection	120,000
Total	682,000

The following activities related to the product line have been budgeted for the period:

PRODUCT	X	Y	Z	Total
Number of purchases	20	30	50	100
Number of stores requisitions	100	80	60	240
Number of set ups	80	140	180	400
Number of movements of materials	120	36	20	176
Number of inspections	336	90	74	500

Required:
Calculate the cost per unit for each product using the Activity-Based Costing (ABC) system.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Activity-Based Costing, Cost Allocation, Costing Methods, Overhead Costs
Level: Level 1

Series: MAY 2016

MI – Mar-Jul 2020 – L1 – SA – Q5 – Costing Techniques

Identify the effect of increasing automation that is not related to costing.

Question

Which of the following is NOT an effect of increasing automation from a costing viewpoint?

Answer:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Automation, Cost Management, Costing Techniques, Overhead Costs
Level: Level 1

Topic: Costing Techniques
Series: MAR/JULY 2020

MI – May 2016 – L1 – SB – Q6b – Costing Methods

Application of Activity-Based Costing (ABC) to allocate overhead costs and calculate cost per unit for products X, Y, and Z.

Question

Quick Company Limited manufactures three products X, Y, and Z. Production and related costs have been budgeted for a period as follows:

PRODUCT	X	Y	Z
No. of Units	40,000	30,000	10,000
Direct Materials	600,000	300,000	160,000
Direct Labour	400,000	150,000	200,000
Machine hours	10,000	6,000	4,000

Overhead costs:

Overhead Type	Amount (₦)
Purchasing function	180,000
Machine related costs	114,000
Set-up cost	132,000
Storage	48,000
Materials handling	88,000
Inspection	120,000
Total	682,000

The following activities related to the product line have been budgeted for the period:

PRODUCT	X	Y	Z	Total
Number of purchases	20	30	50	100
Number of stores requisitions	100	80	60	240
Number of set ups	80	140	180	400
Number of movements of materials	120	36	20	176
Number of inspections	336	90	74	500

Required:
Calculate the cost per unit for each product using the Activity-Based Costing (ABC) system.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Activity-Based Costing, Cost Allocation, Costing Methods, Overhead Costs
Level: Level 1

Series: MAY 2016

Question Tag: Overhead Costs

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MI – Mar-Jul 2020 – L1 – SA – Q5 – Costing Techniques

Identify the effect of increasing automation that is not related to costing.

MI – May 2016 – L1 – SB – Q6b – Costing Methods

Application of Activity-Based Costing (ABC) to allocate overhead costs and calculate cost per unit for products X, Y, and Z.

MI – Mar-Jul 2020 – L1 – SA – Q5 – Costing Techniques

Identify the effect of increasing automation that is not related to costing.

MI – May 2016 – L1 – SB – Q6b – Costing Methods

Application of Activity-Based Costing (ABC) to allocate overhead costs and calculate cost per unit for products X, Y, and Z.

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MI – Mar-Jul 2020 – L1 – SA – Q5 – Costing Techniques

Identify the effect of increasing automation that is not related to costing.

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MI – May 2016 – L1 – SB – Q6b – Costing Methods

Application of Activity-Based Costing (ABC) to allocate overhead costs and calculate cost per unit for products X, Y, and Z.

You're reporting an error for "MI – May 2016 – L1 – SB – Q6b – Costing Methods"

MI – Mar-Jul 2020 – L1 – SA – Q5 – Costing Techniques

Identify the effect of increasing automation that is not related to costing.

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MI – May 2016 – L1 – SB – Q6b – Costing Methods

Application of Activity-Based Costing (ABC) to allocate overhead costs and calculate cost per unit for products X, Y, and Z.

You're reporting an error for "MI – May 2016 – L1 – SB – Q6b – Costing Methods"

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