CIMAPRO19-P02-1 Exam - Topic 6 Question 66 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam

Question #: 66
Topic #: 6

A company makes three products, E, F and G. Total overheads for the year are expected to be $1.2 million, with the following split between cost pools:

Cost driver information has been estimated as follows:

The company plans to make 10,000 units of product E in the year, with an expected direct cost of $0.60 per unit. This annual production of product E is expected to require 20 quality inspections, 28 purchase requisitions, and 400 kilogrammes of materials.

What is the overhead cost per unit of product E?

A$0.10

B$0.70

C$3.57

D$4.17

Show Suggested Answer

Suggested Answer: C, D

by Pamella at Mar 03, 2023, 12:12 AM

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Raul

10 months ago

Are we sure about those cost driver estimates?

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Teri

10 months ago

Definitely going with option C, $3.57.

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Lavonne

10 months ago

Wait, how does that add up to $4.17 per unit? Seems high!

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Hortencia

11 months ago

I think the overhead cost per unit is $0.70.

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Marylou

11 months ago

Overheads are $1.2 million for the year.

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Mindy

11 months ago

I feel like the answer might be closer to $4.17, but I need to double-check how we calculated the overheads for each cost driver.

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Bernadine

11 months ago

I think the overhead cost per unit is calculated by dividing the total overhead allocated to product E by the number of units produced. But I can't recall the exact numbers we used in practice.

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Linwood

11 months ago

I'm a bit unsure about how to split the overheads among the cost pools. Did we cover how to allocate those costs based on the number of inspections and requisitions?

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Oliva

11 months ago

I remember we practiced a similar question where we had to allocate overheads based on different cost drivers. I think we need to calculate the total overhead for product E first.

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Felicia

11 months ago

No problem, I've worked with NetworkPolicies before. I'll start by identifying the labels for the web and db pods, then use those in the NetworkPolicy to allow traffic between them and the ckad00018-newpod.

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Tu

11 months ago

This seems pretty simple, but I want to make sure I'm not missing anything. I'll double-check the sample data and the requirements to make sure I understand exactly what I need to do.

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Phil

11 months ago

Hmm, I'm not sure about this one. Some of these questions seem a bit leading, but I'm not totally confident in my ability to spot them.

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Shantell

1 year ago

Okay, let's do this! I'm feeling confident about this one. With a little bit of number crunching, I'm sure I can nail the overhead cost per unit of product E.

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Lavonna

1 year ago

Haha, this question is a real brain-teaser! I bet the answer is hidden somewhere in all those numbers and formulas. Time to put on my thinking cap!

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Teri

1 year ago

I'm pretty sure it's $4.17.

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Agustin

1 year ago

No, I believe it's $3.57.

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Toshia

1 year ago

I think the overhead cost per unit of product E is $0.10.

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Nobuko

1 year ago

Hmm, I'm not sure about this one. The cost driver information seems a bit complex, but I think I can figure it out if I break it down carefully.

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Gracia

1 year ago

D) $4.17

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Rossana

1 year ago

C) $3.57

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Quiana

1 year ago

B) $0.70

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Ona

1 year ago

A) $0.10

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Kaitlyn

1 year ago

Alright, let's think this through step-by-step. If the total overheads are $1.2 million and the company plans to make 10,000 units of product E, the overhead cost per unit should be straightforward to calculate.

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