A company manufactures a single product. The company absorbs fixed production overhead using a pre- determined rate per unit.
The following data applies for month 7:

During month 7 fixed production overhead was over absorbed by $40,000.
What was the actual number of units produced during month 7?

Since there is no likelihood of them receiving a pay rise in the foreseeable future, your colleagues are considering leaving their current employment and starting their own business.
When preparing the data to evaluate their decision, their current salaries would be:

For the past year a manufacturing company has recorded the number of units produced (x) each week and the total production cost (y) for that week. The company intends to use this data to predict future costs.
For the circumstance described above, linear regression is more useful and accurate than the high-low method because:
1. It uses all the sets of data observed to calculate the line of best fit.
2. The coefficient of variation can estimate what percentage of x is due to a change in y.
3. Forecasts remain valid for values for x outside of the observed range.
Which of the above statements are true?

D3 makes 2 types of toilets - the Executive (Ex) and the Classic (CI). Direct labour costs $6 per hr and overheads are absorbed on a machine hour basis. The overhead absorption rate for the period is $28 per machine hour. What is the traditional cost per unit for (Ex) and (CI)?

Which of the following would help to explain a favourable material price variance?