Mid term MI

Using FIFO, calculate gross profit in December?

Using AVCO, calculate inventory balance at the end of December?

If an assembly line supervisor is paid a salary of £250 each week regardless of output, this wage could be described as a:

• semi-variable cost

• fixed cost

• variable cost

• step cost

A factory making soft toys uses a machine on its single production line. The machine costs £2,400 per month to hire plus £10 per hour it is used. Each week up to 1,000 toys are produced and the line works anywhere between 30 and 40 hours a week.

Which of the following best describes the cost of hiring the machines?

• A step cost

• A variable cost

• A fixed cost

• A semi-variable cost

An engineering company has hired some specialised equipment for a particular job.

Which of the following options is the correct classification of the hire cost?

• Variable production overhead

• Fixed production overhead

•   Indirect expense

•   Direct expense

A designer receives £2 per unit as a royalty from the manufacturer of a product which he designed.

In the accounts of the manufacturer the royalty charge would be treated as a:

• dividend payment

• production overhead

• selling overhead

• prime cost

After reapportionment of the service cost centre costs, what will be the overhead cost of the assembly department cost centre?

After the re-apportionment, the total overhead cost of the Finishing cost centre, to the nearest £, will be:

A company's packing department has budgeted labour hours of 3,250 and budgeted overhead costs of £35,880.

The actual labour hours were 3,175 and actual overheads were £35,544.

The overheads for the period were:

• under-absorbed by £336

• over-absorbed by £336

• under-absorbed by £492

• over-absorbed by £492

In a marginal costing system the value of a closing inventory of 3,400 units of Alphatron will be: