📘 cost accounting

1. **State the problem:** We are given average costs at two activity levels and need to find variable cost per unit, total fixed cost, total expected costs at 18,000 units, and tot

1. **Stating the problem:** We need to calculate the factory overhead cost applied to Order No. 505, the total production cost for this order, and the cost per unit. Then, create t

1. **State the problem:** We need to find the linear relationship between total cost and production (activity level) using the high-low method. 2. **High-low method formula:** The

1. **State the problem:** We need to allocate the costs of the two support departments (Information Technology and Operations) to the three operating departments (Claims Processing

1. **State the problem:** We need to find the contribution margin (CM) per machine hour given that each product requires 4 machine-hours and the CM per unit is 120. 2. **Formula us

1. **Problem 16: Special order decision** A special order of 5,000 units is offered at 30 per unit. Variable cost is 18 per unit. Fixed costs remain unchanged and there is no effec

1. The problem asks to identify the meaning of avoidable costs and common mistakes in relevant costing. 2. Avoidable costs are costs that can be eliminated if a particular decision

1. The problem asks about the nature of unavoidable fixed costs in a make-or-buy decision. 2. In cost accounting and decision-making, fixed costs are costs that do not change with

1. **Problem Statement:** Calculate all material variances for materials A and B using the given data and prove the equation $$\text{MCV} = \text{MPV} + \text{MUV}$$. 2. **Given Da

1. **Problem Statement:** Calculate the total units to be accounted for, equivalent units of production (EUP), total costs to be accounted for, and unit cost per equivalent unit fo

1. **Problem Statement:** Calculate the total units to be accounted for, equivalent units of production (EUP), total costs to be accounted, and unit cost per equivalent unit for ma

1. **Problem Statement:** Calculate the total units to be accounted for, equivalent units of production (EUP), total costs to be accounted for, and unit cost per equivalent unit fo

1. **Stating the problem:** We have production data for 4 time periods (tw) with units produced (in thousands), labor hours per unit for two departments (A and B), and average wage

1. **Problem Statement:** Company XYZ wants to prepare its production overhead budget and allocate overhead costs to different cost centers (Machine Shop A, Machine Shop B, Assembl

1. **Problem Statement:** Company XYZ is preparing its production overhead budget and needs to allocate overhead costs to different cost centers: Machine Shop A, Machine Shop B, As

1. **Problem Statement:** We need to analyze the cost behavior of XYZ Furniture's Production and Assembly departments using the High-Low method based on monthly production units an

1. **Problem Statement:** Prepare the Actual Statement of Comprehensive Income for Good-Quality-Wardrobes for the year ended 31 December 2024 using direct costing principles, calcu

1. **Problem Statement:** Calculate the equivalent units of production, cost per equivalent unit, cost of output transferred and closing WIP, and prepare the process account for th

1. **Problem Statement:** Calculate variances for materials, labour, overheads, and idle time for Bwana Furniture Ltd. based on given standard and actual data. 2. **Material X (Tim

1. **State the problem:** Calculate the overhead absorption rate per unit of products A and B using various methods given the total budgeted overhead costs of 240000 and the produc

1. **State the problem:** We need to apportion the expenses of service departments S1 and S2 to production departments P1 and P2 and also between themselves using the Simultaneous