CIMAPRO19-P02-1 Exam - Topic 9 Question 60 Discussion

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

Question #: 60
Topic #: 9

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: A

by Delisa at Oct 28, 2022, 01:50 AM

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Mignon

5 months ago

Totally agree, $0.70 makes the most sense!

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Nicolette

5 months ago

Wait, $4.17 seems way too high for overhead!

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Letha

6 months ago

I think the overhead cost per unit is $0.70.

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Oren

6 months ago

They plan to make 10,000 units of E.

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Rene

6 months ago

Overheads are $1.2 million for the year.

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Titus

6 months ago

I think the overhead cost per unit is calculated by dividing total overhead by the number of units, but I can't recall the exact steps for this specific scenario.

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Lauran

6 months ago

I feel a bit confused about how to apply the cost driver rates to the units produced. Did we use a formula for that?

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Margarett

6 months ago

This question seems similar to one we did in class about overhead allocation. I think we need to find the total overhead for product E first.

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Yuette

6 months ago

I remember we practiced calculating overhead costs, but I'm not sure how to allocate them based on the cost drivers here.

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Gerald

6 months ago

This seems straightforward. I'll focus on the interface types and speeds to identify the two that are incompatible for the Multi-Chassis Link Aggregation setup.

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Albina

6 months ago

I feel a bit uncertain about the route-targets. Did we cover if PE2 needs to export those specific targets?

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Dortha

6 months ago

Okay, let me see if I can break this down. The senior responsible owner is the key decision-maker, so their focus would be on ensuring the vision is achievable and the organization can deliver the required changes. I'm leaning towards B as the best answer.

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