CIMA Exam CIMAPRO19-P01-1 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

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

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Arthur

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

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Lauran

2 days ago

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

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Lawrence

3 days ago

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

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Truman

5 days 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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