cameroon gce A level 2024 cost and management accounting 3
cameroon gce A level 2024 cost and management accounting 3
ABOUBAE Pic manufactures and distributes a single product using a one–stage production process. The
product is packaged in cartons. The selling price per carton is 18,000 CFAF.
The projected variable cost per carton is made up of
| Direct materials Direct labour Variable production overheads Sales commission |
2,800 CFAF 1 ,200 CFAF 1,400 CFAF 10% of selling price |
|
| The projected fixed production overhead cost per month is 5,400,000 CFAF and the projected output per | ||
| month is 3,000 units | ||
| For the months of May and June 2022, the production manager gives you the (ollowing actual information: | ||
| May | June | |
| Opening stock (Units) Production (Units) |
400 3,200 |
; 3,100 |
| Sales (Units) | 2,400 | 3,600 |
Actual fixed costs per month are made up of:
| Fixed production overheads Fixed distribution overheads Fixed administration overheads Required: |
4,360,000 CFAF 3,040,000 CFAF 1 ,600,000 CFAF |
| Present the income statement on the basis of | i. |
a. absorption costing s .
b. Marginal costing
Reconcile the profit report by both methods in (a) above
. 6
(8 marks)
(8 marks)
(4 marks)
(Total 20 marks)
u.
2. AMINGO Pic manufactures a product. The maintenance cost (semi-variable) for the first six months of the
year 2022 with respect to hours of labour time put in the maintenance department are as follows:
| No. of hours of labour time . 25 35 |
Maintenance cost (CFAF) 800,000 |
Month |
| January | ||
| February | 940,000 | |
| March | 18 | 725,000 |
| April | 12 | 645,000 |
| May | 25 | 780,000 |
| June | 20 | 670,000 |
Required: Using the least squares method (LSM) and the data above
Derive the line of best fit in the form y = ax + b, where y is maintenance cost,
“a” maintenance cost per labour hour, “b” = fixed maintenance cost per month and
“x” the number of hours of labour.
Calculate the maintenance cost for July 2022 if 43 hours of labour time are put in
State two (2) advantages of the least squares method
l.
KOCK Pic manufactures and distributes a single product. According to the production standards, to
manufacture one ( 1 ) unit of the product, the following expenses are to be borne per month:
Raw material
Direct labour
Machine time
The production manager indicates that at full ( 100%) capacity, the company produces 6,000 units of the
product with total production overhead cost of 1 ,215,000 CTAI; (out of which 540,000 CFAF is variable).
3.
0.8 kg (a) 800 CT’AF a kg
45 minutes @ 1 ,020 CFAF an hour
27 minutes
At the end of May 2022, the production manager reported the following details:
| Output Raw material Direct labour Production overheads Machine time |
9,000 units 7,650 kg @ 775 CFAF a kg 6,300 hours @ 1 ,015 CFAF an hour 1 ,800,000 CFAF 3,600 hours |
Required
| Present the standard cost card (Appendix 1 ) Calculate the global or total variance ( Vo) Present the table of comparison between actual cost and standard cost (Appendix 2 ) |
Analyse the variance on overheads cost into budget variance, activity variance sand efficiency variance
(5 marks)
(Total 20 marks)
