Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

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

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

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

Actual exam question for CIMA's CIMAPRO19-P02-1 exam
Question #: 60
Topic #: 9
[All CIMAPRO19-P02-1 Questions]

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?

Show Suggested Answer Hide Answer
Suggested Answer: A

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

Limited Time Offer

25%

Off

Get Premium CIMAPRO19-P02-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Mignon
10 months ago
Totally agree, $0.70 makes the most sense!
upvoted 0 times
...
Nicolette
10 months ago
Wait, $4.17 seems way too high for overhead!
upvoted 0 times
...
Letha
10 months ago
I think the overhead cost per unit is $0.70.
upvoted 0 times
...
Oren
11 months ago
They plan to make 10,000 units of E.
upvoted 0 times
...
Rene
11 months ago
Overheads are $1.2 million for the year.
upvoted 0 times
...
Titus
11 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.
upvoted 0 times
...
Lauran
11 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?
upvoted 0 times
...
Margarett
11 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.
upvoted 0 times
...
Yuette
11 months ago
I remember we practiced calculating overhead costs, but I'm not sure how to allocate them based on the cost drivers here.
upvoted 0 times
...
Gerald
11 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.
upvoted 0 times
...
Albina
11 months ago
I feel a bit uncertain about the route-targets. Did we cover if PE2 needs to export those specific targets?
upvoted 0 times
...
Dortha
11 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.
upvoted 0 times
...

Save Cancel