CIMAPRO19-P01-1 Exam - Topic 6 Question 80 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam

Question #: 80
Topic #: 6

XY manufactures a range of products and uses an activity based costing system.

Budgeted production of Product B is 7,500 units.

Overheads have been identified by activity and related to appropriate cost drivers.

Product B is produced in batches of 250 units. Machines have to be reset after every batch and quality inspections are carried out on every third batch.

What is the total overhead cost per unit of Product B?

Give your answer to two decimal places.

A$1.40

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Suggested Answer: A, B, C

References:

by Rory at Jan 25, 2024, 05:55 PM

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Tony

10 months ago

Wait, are we sure about those calculations? Sounds off to me.

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Artie

10 months ago

Totally agree, resetting machines adds up too!

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Chanel

10 months ago

Not sure about that, seems a bit low for all those inspections.

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Maricela

10 months ago

I think the overhead cost per unit is $1.40.

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Alaine

10 months ago

The budgeted production is 7,500 units.

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Ahmed

10 months ago

I think the total overhead cost per unit should be calculated by dividing the total overhead by the number of units produced, but I need to double-check the batch sizes.

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Merlyn

11 months ago

I feel a bit confused about how to account for the quality inspections. Do we include those costs in the total overhead for each unit?

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Nelida

11 months ago

This question seems similar to one we did in class about overhead allocation. I think we need to consider the number of batches for Product B.

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Susana

11 months ago

I remember we practiced calculating overhead costs using activity-based costing, but I'm not sure how to apply it to the batch production here.

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Maile

11 months ago

This seems doable, but I want to double-check my work. I'll make sure to show all my calculations step-by-step to maximize my chances of getting full credit.

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Sherell

11 months ago

Okay, I think I've got a handle on this. I'll need to determine the total overhead costs, then divide by the budgeted production volume to get the overhead cost per unit.

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Alpha

11 months ago

Hmm, I'm a bit unsure about how to handle the batch-level costs for the machine setups and quality inspections. I'll need to make sure I calculate those correctly.

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Boris

11 months ago

This looks like a pretty straightforward activity-based costing question. I'll need to identify the relevant cost drivers and allocate the overhead costs accordingly.

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Louisa

11 months ago

I'm a bit confused by the different options here. Can someone explain the differences between them? I want to make sure I understand the right sequence before selecting an answer.

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Providencia

11 months ago

This looks like a straightforward ARM template deployment question. I'll need to review the available resources and options to determine the appropriate command to use.

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Fletcher

11 months ago

Wait, I'm a bit confused. Does the question mean if OIDC is supported by Okta, or if it's supported by applications in the Okta network? I'll need to read this carefully.

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Glenn

1 year ago

I bet the answer is going to be something like $1.40... *looks at options* Yup, nailed it! *high-fives self*

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Doug

1 year ago

That was an easy one!

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Douglass

1 year ago

I knew it! *high-fives back*

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Rosalind

1 year ago

A) $1.40

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Elden

1 year ago

Ugh, I hate these word problems. Can't they just give us a simple formula and some numbers? *sighs* Alright, let's do this.

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Francesco

1 year ago

I'm not sure about the answer, I need to calculate it again based on the information provided.

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Arthur

1 year ago

I agree with Lauran, the answer should be $1.40 because of the batch production and quality inspections.

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Lauran

1 year ago

I think the total overhead cost per unit of Product B is $1.40.

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Lawrence

1 year ago

Wait, do I need to consider the cost of the machines being reset? This could get tricky... *grabs calculator*

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Caprice

1 year ago

User 2

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Felix

1 year ago

User 1

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Maryln

1 year ago

User 2

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Theola

1 year ago

User 1

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Truman

1 year ago

Okay, let's see... 7,500 units, 250 per batch, and quality checks every third batch. Sounds like a job for a spreadsheet and some careful calculations!

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