The following information relates to a manufacturing unit: Budgeted hours 5,200 Standard hours produced 5,600 Actual ho

[answerhappygod]

The following information relates to a manufacturing unit:

Budgeted hours 5,200 Standard hours produced 5,600 Actual hours worked 5,800 What is the activity ratio for the period?

a) 96.6%

b) 103.6%

c) 107.7%

d) 111.5%





A company manufactures and sells a single product. The variable cost of the product is $2.50 per unit and all production each month is sold at a price of $3.70 per unit. A potential new customer has offered to buy 6,000 units per month at a price of $2.95 per unit. The company has sufficient spare capacity to produce this quantity. If the new business is accepted, sales to existing customers are expected to fall by two units for every 15 units sold to the new customer. What would be the overall increase in monthly profit which would result from accepting the new business?

a) $1 740

b) $2 220

c) $2 340

d) $2 700


A firm operates a process, the details of which for the period were as follows: i. There was no opening work in progress. ii. During the period, 8,250 units were received from the previous process at a value of £ 453,750, labour and overheads were £ 350,060 and material introduced was £ 24,750. iii. At the end of the period, the closing work in progress was 1,600 units, which were 100 per cent complete in respect of materials, and 60 per cent complete in respect of labour and overheads. iv. The balance of units was transferred to finished goods. Required: Determine:

a) the number of equivalent units of labour and overheads produced during the period.

b) value of finished goods

c) value of closing work in progress