CAPE Accounting Unit 2 · 2008 · Paper 2

30 questions and parts from this paper. Open one to see it in full, then practise it on Quelpr and get it marked against the mark scheme.

1. 1(a)(i)2 marksCompute total direct materials.
2. 1(a)(ii)2 marksCompute total indirect labor.
3. 1(a)(iii)3 marksCompute total factory overhead.
4. 1(a)(iv)2 marksCompute total product cost.
5. 1(a)(v)2 marksCompute total period cost.
6. 1(a)(vi)2 marksCompute total variable manufacturing cost.
7. 1(b)(i)2 marksAssuming that Cox Manufacturing Company has the production capacity to fill this order without affecting existing production, list the categories of costs that are relevant to the decision.
8. 1(b)(ii)3 marksCox Manufacturing will not accept the order if the company will be worse off financially by so doing. Calculate the minimum price that Cox Manufacturing Company can charge for the order.
9. 1(c)(i)3 marksCalculate the allocation rate for EACH service department.
10. 1(c)(ii)14 marksCalculate the amount of overhead cost that will be assigned to EACH operating department.
11. 2(a)(i)4 marksCalculate the firm's pre-determined overhead application rate.
12. 2(a)(ii)7 marksPrepare a job cost sheet for the Eldon Company job completed in March, showing clearly the traceable and non-traceable costs for the job.
13. 2(a)(iii)5 marksCalculate the amount of over- or under-applied overhead (non-traceable) costs for Williams and Associates for 2007.
14. 2(b)(i)a)3 marksCompute the unit product cost assuming that Eldon Company uses absorption costing.
15. 2(b)(i)b)2 marksCompute the unit product cost assuming that Eldon Company uses variable costing.
16. 2(b)(ii)5 marksPrepare a variable costing income statement for the company.
17. 2(b)(iii)5 marksPrepare an absorption costing income statement for the company.
18. 2(b)(iv)2 marksReconcile the difference between the net operating income computed under variable costing and that computed under absorption costing.
19. 2(c)2 marksOutline ONE way in which activity-based costing differs from traditional costing methods.
20. 3(a)(i)4 marksDescribe FOUR benefits that a business may gain from budgeting.
21. 3(a)(ii)4 marksDistinguish between 'ideal' and 'practical standards'.
22. 3(a)(iii)3 marksIdentify the factors that should be considered in setting the standard cost for a product or service.
23. 3(b)(i)2 marksCompute the contribution margin.
24. 3(b)(ii)4 marksCalculate the number of children who must be enrolled in order for the centre to break even.
25. 3(b)(iii)5 marksCalculate the margin of safety in dollars AND as a percentage of budgeted revenue, if the budgeted enrolment of the day care centre is 135 children.
26. 3(c)(i)3 marksDetermine the amount of raw materials (in kg) needed to produce ONE unit of EACH product.
27. 3(c)(ii)3 marksDetermine the contribution margin per kg of material used in EACH product.
28. 3(c)(iii)3 marksPrepare a schedule showing the total direct materials that will be required to produce the units estimated to be sold during the following month.
29. 3(c)(iv)1 markCork Hill Company would like to maximize its income from the production of the three products. State the criteria that should be used by the company to allocate the 5 000 kg of raw materials among the three products.
30. 3(c)(v)3 marksDetermine the amount of EACH product that Cork Hill Company should produce during the following month.