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CIMAPRO19-P01-1 Exam - Topic 1 Question 3 Discussion

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)?
C) (Ex) 65, (CI) 49
A) (Ex) 60, (CI) 56
B) (Ex) 58, (CI) 53
D) (Ex) 62, (CI) 52
E) (Ex) 63, (CI) 48

CIMAPRO19-P01-1 Exam - Topic 1 Question 3 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam
Question #: 3
Topic #: 1
[All CIMAPRO19-P01-1 Questions]

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)?

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Suggested Answer: C

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Luther
9 months ago
Direct labor costs are $6 per hour, just FYI.
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Mirta
9 months ago
Wait, are we sure about those numbers? Sounds off.
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Desmond
9 months ago
I'm leaning towards option D, seems reasonable.
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Benton
9 months ago
I think (Ex) should cost more than (CI).
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Stephen
9 months ago
The overhead absorption rate is $28 per machine hour.
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Chauncey
10 months ago
I'm a bit confused by the different domain names mentioned (service.example.com, service-alb.example.com). I'll need to make sure I understand how they relate to each other and the overall architecture before selecting the right solution.
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Weldon
10 months ago
Okay, I remember this from the lecture. The right order is UOM Class, UOM, UOM Conversions. I've got this!
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