The company Andrew works for currently uses traditional absorption costing. He needs to convince his manager that the company should be using activity based costing instead.
Andrew has compiled this list of advantages:
(1)ABC will allow us to make better pricing decisions
(2)ABC will give us tighter control over costs as we will be able to pinpoint inefficiencies (3)ABC will help improve our product mix by highlighting the best combination of materials (4)ABC is suitable for our business as we only produce one product Which statement or statements are INCORRECT?

A company has to production departments and service departments (Maintenance and Stores). The overhead costs of each of the departments are as follows.

Where M = total Maintenance overhead after reapportionment from Stores
S = total Stores overhead after reapportionment from Maintenance
60% of the total Maintenance overhead and 50% of the total Stores overhead are to be apportioned to Production Department 1.
The total production overhead for Production Department 1 after reapportionment of the service departments' overhead costs is closest to

Refer to the exhibit.

A company issued its production budget based on an anticipated output of 2000 units. The actual output for the period was 1500 units. The details of the costs are shown below:
What was the budget expenditure variance?

Refer to the exhibit.

The following budgetary information is available for a manufacturing company:
A particular cost unit takes 4 machine hours in the machining department and 3 labour hours in each of the assembly and finishing departments.
The overhead cost absorbed per unit is:
Give your answer to 2 decimal places.

Refer to the exhibit.

Vertical axis = £; horizontal axis = level of activity
This graph is known as a: