CIMA Exam CIMAPRO19-P02-1 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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Kaitlyn

9 days 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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