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12 marksService Sector Costing

CAPE Accounting Unit 2 · 2022 · Paper 2 · Question 2(a)

Allen and Smith is preparing a proposal to provide receivership services requiring professional labour and various direct costs, with overhead allocated based on direct labour hours and a 20% mark-up.

Compute the estimated service price of this project to be included in the proposal.

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Other parts of this question

  1. 2(b)(i)Explain the difference between absorption costing and marginal costing.[4 marks]
  2. 2(b)(ii)Explain the difference between a cost centre and a profit centre.[4 marks]
  3. 2(c)(i)Calculate the activity cost driver rates for Setup, Maintenance, and Inspection.[6 marks]
  4. 2(c)(ii)Calculate the total cost for Job QP3514 using activity-based costing.[9 marks]

More practice: the rest of this paper · more Service Sector Costing questions · all CAPE Accounting Unit 2 past papers