The following question is taken from the December 2011 exam paper.
The following shows the total overhead costs for given levels of a company's total output.
Cost Output
$ Units
4,000 1,000
7,000 2,000
10,000 3,000
9,500 4,000
A step up in fixed costs of $500 occurs at an output level of 3,500 units.
What would be the variable overhead cost per unit (to the nearest $0.01) using the high-low technique?
ACCA examining team comments
This question relates to study guide reference A3(h).
The high-low technique estimates variable cost per unit by looking at the change in costs between the highest and lowest levels of output. The correct answer is A. This can be calculated by finding the change in cost between the highest and lowest output levels not explained by the step in fixed costs ($9,500 - $4,000 - $500 = $5,000) , and dividing by the change in output between the highest and lowest output levels. ($5,000 / (4,000 units - 1,000 units) = $1.67 per unit.
Many candidates incorrectly based their calculations on the change in costs between the highest and lowest levels of cost, and hence selected option D (($10,000 - $4,000)/ (3,000 units -1,000 units) or C (($10,000 - $4,000 - $500)/ (3,000 units - 1,000 units). This mistake suggests some confusion between the independent variable, output, and the dependent variable, cost.
多做几道
A company uses a standard absorption costing system. Last month budgeted production was 8,000 units and the standard fixed production overhead cost was $15 per unit. Actual production last month was 8,500 units and the actual fixed production overhead cost was $17 per unit.What was the total adverse fixed production overhead variance for last month?
A cost centre had an overhead absorption rate of $4.25 per machine hour, based on a budgeted activity level of 12,400 machine hours.In the period covered by the budget, actual machine hours worked were 2% more than the budgeted hours and the actual overhead expenditure incurred in the cost centre was $56,389.What was the total over or under absorption of overheads in the cost centre for the period?
Which of the following would help to explain a favourable direct labour efficiency variance?
(i) Employees were of a lower skill level than specified in the standard
(ii) Better quality material was easier to process
(iii) Suggestions for improved working methods were implemented during the period
Which of the following statements is correct?
The following information relates to labour costs for the past month:
Budget Labour rate $10 per hour
Production time 15,000 hours
Time per unit 3 hours
Production units 5,000 units
Actual Wages paid $176,000
Production 5,500 units
Total hours worked 14,000 hours
There was no idle time.
What were the labour rate and efficiency variances?
最新试题
该科目易错题
该题目相似题
