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2 marksOverheads and Manufacturing Accounts

CAPE Accounting Unit 2 · 2016 · Paper 2 · Question 1(d)(i)

Crawle Company Ltd applies overhead based on direct labour hours, with provided annual budget and actual data for 2015 and specific figures for December 2015.

Compute the predetermined production overhead rate for 2015.

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Other parts of this question

  1. 1(a)State the classification for EACH of the 10 listed cost items.[10 marks]
  2. 1(b)(i)Explain what happens to the cost of material issued.[2 marks]
  3. 1(b)(ii)Explain what happens to the value of closing inventory.[2 marks]
  4. 1(b)(iii)Explain what happens to profit.[2 marks]
  5. 1(c)(i)Advise management whether it would be profitable to make or buy Component ABC.[6 marks]
  6. 1(c)(ii)Advise management whether to accept a special offer of $1750 per unit from an outside company for Product XYZ, providing justification.[9 marks]
  7. 1(d)(ii)Calculate the over/under applied overhead for December 2015.[2 marks]

More practice: the rest of this paper · more Overheads and Manufacturing Accounts questions · all CAPE Accounting Unit 2 past papers