CIMAPRA17-BA2-1 Exam - Topic 1 Question 35 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam

Question #: 35
Topic #: 1

A company produces a single product for which the following cost data are available.

Analysis by the management accountant has shown that 100% of direct material cost and 50% of direct labour cost are variable costs. 50% of production overhead and 100% of selling and distribution overhead are variable costs.

What is the marginal cost per unit?

A$6

B$7

C$8

D$9

Show Suggested Answer

Suggested Answer: B

by Rhea at May 30, 2022, 07:05 PM

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Ashton

4 months ago

Wait, are we sure about those percentages?

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Gary

4 months ago

I agree, $8 makes sense with those overheads.

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Evette

4 months ago

Not sure about that, seems high.

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Maryann

4 months ago

I think the marginal cost is $8.

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Jennifer

4 months ago

Direct material is fully variable, right?

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Ilona

5 months ago

If I remember right, we need to add up all the variable costs per unit. I think I got $8, but I might have missed something.

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Eura

5 months ago

I remember a practice question where we had to separate fixed and variable costs, but I can't recall the exact percentages for overheads.

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Rory

5 months ago

I think the marginal cost is mostly about variable costs, but I'm not sure if I calculated the overheads correctly.

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Kristofer

5 months ago

I feel like the selling and distribution overheads play a big role here, but I’m uncertain about how to apply the percentages to the total costs.

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Tammara

5 months ago

Hmm, I'm a bit unsure about this one. I know drug screening is a sensitive topic, so I'll need to carefully consider the legal and ethical implications of each option.

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