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

References:

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

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Glenn

2 months ago

I bet the answer is going to be something like $1.40... *looks at options* Yup, nailed it! *high-fives self*

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Doug

28 days ago

That was an easy one!

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Douglass

1 months ago

I knew it! *high-fives back*

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Rosalind

1 months ago

A) $1.40

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Elden

2 months ago

Ugh, I hate these word problems. Can't they just give us a simple formula and some numbers? *sighs* Alright, let's do this.

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Francesco

2 months ago

I'm not sure about the answer, I need to calculate it again based on the information provided.

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Arthur

2 months ago

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

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Lauran

2 months ago

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

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Lawrence

2 months ago

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

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Caprice

1 months ago

User 2

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Felix

1 months ago

User 1

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Maryln

1 months ago

User 2

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Theola

2 months ago

User 1

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Truman

2 months 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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