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2 marksOverheads and Manufacturing Accounts

CAPE Accounting Unit 2 · 2021 · Paper 2 · Question 2(b)(iii)

Phillips Electrical uses a job order costing system where overhead is applied based on direct labour costs. Job order cost sheets and additional information for February and March 2021 are provided.

Calculate the total prime cost incurred during the month of March.

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Other parts of this question

  1. 2(a)Explain EACH of the following costing methods, giving ONE example of a type of business that may use each method: • Job-order costing • Process costing[6 marks]
  2. 2(b)(i)Calculate the predetermined overhead rate used by Phillips Electrical.[2 marks]
  3. 2(b)(ii)Calculate the total cost of the ending work-in-process inventory for both February and March.[4 marks]
  4. 2(b)(iv)Calculate the cost of goods manufactured for March.[3 marks]
  5. 2(c)(i)Calculate the cost per unit of EACH of the following chocolate varieties, using the traditional costing system: • Decadent • Monumental[2 marks]
  6. 2(c)(ii)Determine the activity cost driver rate for set-up costs and inspection costs.[4 marks]
  7. 2(c)(iii)For the smooth chocolate variety, compute the estimated overhead cost per unit using the activity-based costing system.[8 marks]
  8. 2(d)(i)Complete the sentence: 'Absorption costing income will equal variable costing income if ..........'[1 mark]
  9. 2(d)(ii)Complete the sentence: 'Absorption costing, expenses all of the current period fixed overhead costs, as well as, ..........'[1 mark]
  10. 2(d)(iii)Complete the sentence: 'Absorption costing income will be greater than variable costing income if ..........'[1 mark]
  11. 2(d)(iv)Complete the sentence: 'The total amount of fixed overhead cost is expensed as ..........'[1 mark]

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