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A company manufactures a single product, M. Budgeted production output of product M during August is 200 units. Each unit of product M requires 6 labour hours for completion and PR Co anticipates 20 per cent idle time. Labour is paid at a rate of $7 per hour. What is the direct labour cost budget for August?
The answer states that “allowance for idle time (20% of total time = 25% of active time)”
Can I know how they state that “20% of total time = 25% of active time”
18.11 CA Co manufactures a single product and has drawn up the following flexed budget for the year.
60% 70% 80%
$ $ $
Direct materials 120,000 140,000 160,000
Direct labour 90,000 105,000 120,000
Production overhead 54,000 58,000 62,000
Other overhead 40,000 40,000 40,000
Total cost 304,000 343,000 382,000What would be the total cost in a budget that is flexed at the 77% level of activity?
? $330,300
? $370,300
? $373,300
? $377,300Yes, sir, I have watched all the free lectures. I was a little confused here. Thank you very much, sir.
A sole trader fixes her prices by adding 50 per cent to the cost of all goods purchased.
This is the first line sir.
Yes sir, I have watched all the lectures.
I am unsure about the cost of sales figure. How did the 2/3 come?
X Co sells goods with a one year warranty and had a provision for warranty claims of $64,000 on 31 December 20X0. During the year ended 31 December 20X1, $25,000 in claims were paid to customers. On 31 December 20X1, X Co estimated that the following claims will be paid in the following year:
Scenario Probability Anticipated cost
Worst case 5% $150,000
Best case 20% $25,000
Most likely 75% $60,000What amount should X Co record in the statement of profit or loss for the year ended
31 December 20X1 in respect of the provision?
A $57,500
B $6,500
C $18,500
D $39,000How do we get the answer as C?
Thank you for the explanation sir.
I do have the answer, it’s a question from the BPP revision kit but I didn’t understand their explanation.
According to Porter’s five forces model, which TWO of the following would tend to indicate
there is a low threat of new entrants to the market?A. Low capital requirements
B. Patents exist on major product lines
C. Access to distribution channels is not restricted
D. Large numbers of suppliers of raw materials
E. Low switching costs for customers
F. Existing firms in the market are large
G. Rapidly expanding marketWhat are the correct answers to this question?
19. Country ABC is a country operating a balance of payments surplus on goods and services with
other countries. The demand for ABC products and services in other countries is very price elastic.
While demand in ABC for products and services from other countries is price inelastic.
If the value of the ABC currency falls against those of its international trading partners, what
will be the effect on ABC’s international trade situation?A. The value of imports will rise and the value of exports will fall
B. The value of imports will fall and the value of exports will rise
C. The value of both exports and imports will fall
D. The value of both exports and imports will riseCan I know the correct answer for this?
Can I know each of their theories? These were not in the open tuition notes.
Katz and Kahn
Hersey and Blanchard
Tannenbaum and SchmidtWhich of the following activities create vulnerability to fraud?
(i) Calculating payslips
(ii) Preparing delivery notes
(iii) Paying supplier invoices
(iv) Meeting budgets and performance targets? (iii) only
? (i) and (iii) only
? (i) and (ii) only
? (i), (ii), (iii) and (iv)How does (iv) create vulnerability to fraud?
