CAPE Accounting Unit 2 · 2014 · Paper 2

25 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)3 marksList THREE components of 'carrying cost'.
2. 1(a)(ii)2 marksState TWO components of 'ordering cost'.
3. 1(a)(iii)5 marksCalculate the recommended order quantity (E.O.Q.) for the tablets using the formula: \text{E.O.Q.} = \sqrt{\frac{2 D C_o}{C_c}} where D = Annual demand, C_c = Carrying cost per unit, and C_o = Order cost per…
4. 1(a)(iv)2 marksCalculate how many times orders should be placed per year.
5. 1(a)(v)3 marksCalculate the reorder point in units using: \text{Maximum usage} \times \text{maximum lead time}
6. 1(b)(i)5 marksDetermine whether the company should continue to purchase the monitors, showing all workings.
7. 1(b)(ii)6 marksIf the factory space used for manufacturing monitors could instead be rented out for $750,000 per month, determine whether the company should make or buy the monitor, showing all workings.
8. 1(c)(i)5 marksCalculate the direct labour cost and production overhead chargeable to EACH job where overtime is worked to meet production targets of the company itself.
9. 1(c)(ii)4 marksCalculate the direct labour cost and production overhead chargeable to EACH job where the overtime is worked at the customer's request.
10. 2(a)(i)3 marksCompute the activity application rate for EACH activity centre for Gayle Ltd.
11. 2(a)(ii)4 marksCompute the total overhead cost assigned to EACH product using activity-based costing.
12. 2(a)(iii)4 marksCompute the total cost per unit to manufacture EACH product using activity-based costing.
13. 2(a)(iv)2 marksCompute the total overhead cost assigned to EACH product if direct labour cost had been used to allocate overhead (traditional costing approach).
14. 2(a)(v)4 marksCompute the total cost per unit to manufacture EACH product using direct labour cost (traditional costing approach).
15. 2(b)18 marksPrepare a production report for the moulding department for April 2011, showing all workings.
16. 3(a)(i)5 marksList FIVE assumptions of breakeven analysis.
17. 3(a)(ii)5 marksState why EACH of the five assumptions stated in (a)(i) may NOT always be true.
18. 3(b)(i)3 marksCalculate the breakeven point in units.
19. 3(b)(ii)3 marksCalculate the breakeven point in dollars.
20. 3(b)(iii)3 marksCalculate the margin of safety in units.
21. 3(b)(iv)3 marksCalculate the margin of safety in dollars.
22. 3(c)(i)3 marksState THREE objectives of budgeting.
23. 3(c)(ii)6 marksOutline TWO features EACH of the imposed, participative, and negotiated budget styles.
24. 3(c)(iii)2 marksState the role of a budget committee.
25. 3(c)(iv)2 marksName TWO sections of a cash budget.