BA2 Exam Question 86
A new product requires an investment of S200.000 in machinery and working capital. The total sales volume over the product's life will be 5,000 units. The forecast costs per unit throughout the product's life are as follows:

The product is required to earn a return on investment of 35%. What unit selling price needs to be achieved?

The product is required to earn a return on investment of 35%. What unit selling price needs to be achieved?
BA2 Exam Question 87
The value of the capital invested in producing and selling product F is $600,000. A return on investment of
14% is required from all products.
Budgeted production and sales of product F for next period are 25,000 units and the standard cost per unit is
$33.
In order to achieve the required return on investment the selling price per unit of product F must be
14% is required from all products.
Budgeted production and sales of product F for next period are 25,000 units and the standard cost per unit is
$33.
In order to achieve the required return on investment the selling price per unit of product F must be
BA2 Exam Question 88
Refer to the exhibit.

Data from the management accounting reports for the DD Division of a company for the latest period are as follows.
The value added for the DD Division for the latest period was

Data from the management accounting reports for the DD Division of a company for the latest period are as follows.
The value added for the DD Division for the latest period was
BA2 Exam Question 89
The variable overhead expenditure variance is:
BA2 Exam Question 90
A company operates an absorption costing system. Overheads are absorbed using a pre-determined absorption rate using labour hours. In the period actual labour hours were 10,600, 400 hours below budget. Actual overheads for the period were £234,680 and there was an under-absorption of overheads of £1,480.
What was the budgeted level of overheads?
What was the budgeted level of overheads?
