SolnsMidsem2009_2 - H\My D...

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Unformatted text preview: H:\My D ocuments\ACCT2522_2008\Admin\Assessment\Midsession\Practice Questions\MidsessionPracticeQuestionGuidance_intallment2.doc 9/ 04/2008 2007 Part A 12 marks i) a) Standard material cost (6 marks) Black Powder: 2 x $11 = 22.00 per firecracker* Colour agent: 0.5kg x $7 = 3.50 per firecracker Other ingredients: 0.1 x $20 = 2.00 per firecracker Plastic shell $12 = 12.00 per firecracker $39.50 per firecracker * Calculating standard cost for black powder ¡ Powder std cost: 120,000 x 1/3 = 40,000kg ¡ 440,000/40,000 = $11 kg ¡ Needed to show tha t th e transfer price was us ed to cal culate stand ard costs, not total variable cost/ total units. We have emphasised that divisions may charge a mark-up when transferring between divisions, this question tests this concept. ¡ 2 x 11 = $22.00 Marks were deducted for including materials wasted as a result of testing failure. b) Standard labour cost (3 marks) Mixing: 6/60 mins x ($15 x 1.25) 1.87 Packing 5/60 mins x ($15 x 1.25) 1.56 $3.43 Marks were deducted for: ¡ Including overhead costs i.e., inspection costs ¡ Not including on-costs ¡ Using incorrect labour rates. ¡ For not dividing minutes by 60 ii) Effectiveness measure and why One of the better answers was % of tests correctly carried out, as this measures how well you are doing the testing. Also acceptable was “% customer complaints about defective products are doing the testing....
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SolnsMidsem2009_2 - H\My D...

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