CAPE Accounting Unit 2 · 2013 · Paper 2

26 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)13 marksUsing the provided answer sheet, prepare a schedule to allocate service department costs to production departments using the step-down method.
2. 1(a)(ii)2 marksCompute predetermined overhead rates for Production Department P1 and Production Department P2.
3. 1(b)(i)4 marksIn the first week, Sue worked 45 hours but was idle for 3 hours due to machine breakdowns, with no overtime. Allocate Sue's wages for the week between direct labour cost and manufacturing overhead cost.
4. 1(b)(ii)5 marksIn the second week, Sue worked 60 hours with no idle time. Allocate Sue's wages for the week between direct labour cost and manufacturing overhead cost.
5. 1(b)(iii)2 marksIdentify two other methods of remuneration/payment that Tell Company could use for its employees.
6. 1(c)(i)3 marksUse a diagram and an example to explain fixed cost.
7. 1(c)(ii)3 marksUse a diagram and an example to explain variable cost.
8. 1(c)(iii)3 marksUse a diagram and an example to explain stepped-fixed cost.
9. 2(a)(i)9 marksDetermine the overhead rate for each of the three activities shown in Table 2.
10. 2(a)(ii)6 marksAssign the manufacturing overhead costs for April to the two products.
11. 2(a)(iii)2 marksCalculate the total assigned overhead costs.
12. 2(a)(iv)2 marksCalculate the overhead cost per unit for each product.
13. 2(b)8 marksState four differences between job order costing and process costing.
14. 2(c)(i)4 marksIdentify four types of organizations in which service sector costing can be used.
15. 2(c)(ii)4 marksOutline two difficulties associated with service sector costing.
16. 3(a)(i)2 marksCalculate the contribution margin ratio.
17. 3(a)(ii)3 marksCalculate the number of tickets that must be sold to break even in units and in dollars.
18. 3(a)(iii)2 marksCalculate the number of tickets that must be sold to earn a target profit of $50 000.
19. 3(b)4 marksIdentify four non-financial factors that can influence Fanciful Enterprises' ticket pricing decision.
20. 3(c)(i)3 marksExplain the payback period project appraisal technique.
21. 3(c)(ii)3 marksExplain the internal rate of return (IRR) project appraisal technique.
22. 3(c)(iii)3 marksExplain the net present value (NPV) project appraisal technique.
23. 3(d)(i)4 marksCompute the labour rate variance.
24. 3(d)(ii)4 marksCompute the labour efficiency variance.
25. 3(d)(iii)3 marksCompute the material price variance.
26. 3(d)(iv)4 marksCompute the material quantity variance.