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CSEC Principles of Accounts · 2022 · Paper 2 · Question 5(c)

High Tech Limited received an order for Scalextric toy cars. Each car requires 5 kg of direct material at $10 per kg, with specific labour and machine hours in each department.

Calculate the total cost of producing ONE Scalextric toy car, showing direct materials calculations, production hours calculations applying the OARs, and overall total cost.

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Other parts of this question

  1. 5(a)Calculate the total indirect costs for EACH cost centre (Assembly and Finishing).[2 marks]
  2. 5(b)(i)State the formula used to calculate the overhead absorption rate (OAR).[1 mark]
  3. 5(b)(ii)Calculate the overhead absorption rate (OAR) for EACH cost centre.[6 marks]
  4. 5(d)(i)Define the term 'mark-up pricing'.[1 mark]
  5. 5(d)(ii)Calculate the total dollar value of the mark-up on ONE Scalextric toy car.[1 mark]
  6. 5(d)(iii)Calculate the selling price of ONE Scalextric toy car.[2 marks]

More practice: the rest of this paper · more Cost Classification and Manufacturing Accounts questions · all CSEC Principles of Accounts past papers