A truck delivered sand to two customers in a week. The following details are available.

The truck cost $3,060 to operate in the week. Each customer delivery was carried out separately, and the truck made no other deliveries in the week.

What is the cost per kilogram/kilometre of sand delivered in the week (to the nearest $0.001)?

Annie is to set up a small hairdressing business at home. She anticipates working a 35-hour week and taking four weeks' holiday per year. Her expenses for materials and overheads are expected to be $3,000 per year, and she has set herself a target profit of $18,000 for the first year.

Assuming that only 90% of her working time will be chargeable to clients, what price should she charge for a 'colour and cut' which would take 3 hours?

A new product is being developed. The development will take one year and the product is expected to have a life cycle of two years before it is replaced.

Which of the following statements are true of life cycle costing?

Statement 1: It is useful for assessing whether new products have been successful.
Statement 2: The individual profitability for products is less accurate.

Which costing method is based around a calculation involving a desired profit margin and a competitive market price?

Which stage of the product life cycle do the following characteristics refer to?

New competitors
Customer feedback received
New distribution outlets being found
Product quality improvements made

A firm makes special assemblies to customers' orders and uses job costing.

The data for a period are:

The budgeted overheads for the period were $126,000.
Job number BB15 was completed on the last day of the period.

What was the approximate value of closing work-in-progress at the end of the period?

$_______

A company operates a job costing system. Job number 1012 requires $45 of direct materials and $30 of direct labour. Direct labour is paid at the rate of $7.50 per hour. Production overheads are absorbed at a rate of $12.50 per direct labour hour and non-production overheads are absorbed at a rate of 60% of prime cost.

What is the total cost of job number 1012?

$_______

How is target cost calculated?

Last year, Bryan Air carried excess baggage of 250,000 kg over a distance of 7,500 km at a cost of $3,750,000 for the extra fuel.

What is the cost per kg-km?

The following information relates to a management consultancy organisation:

The organisation adds 40% to total cost to arrive at the final fee to be charged to a client.

Assignment number 789 took 54 hours of a senior consultant's time and 110 hours of junior consultants' time.

What is the final fee to be charged for Assignment 789?

A chain of coffee shops has implemented a Total Quality Management system to ensure high quality and consistency across all outlets. As part of the scheme, the chain offers a free replacement drink to any customer not completely satisfied with their purchase.

Which of the following BEST describes the cost of providing replacement drinks?

A firm makes special assemblies to customers' orders and uses job costing.

The data for a period are:

The budgeted overheads for the period were $126,000.
Job number BB15 was completed on the last day of the period.

What overhead should be added to job number CC20 for the period?

$_______

Which of the following are likely to use service costing?

1. A college
2. A hotel
3. A plumber

A company calculates the prices of jobs by adding overheads to the prime cost and adding 30% to total costs as a mark up. Job number Y256 was sold for $1,690 and incurred overheads of $694.

What was the prime cost of the job?

$_______

Which of the following costing methods is most likely to be used by a company involved in the manufacture of liquid soap?

A product is in the stage of its life cycle which is typified by falling prices but good profit margins due to high sales volumes.

What stage is it in?

A company operates a job costing system.

The estimated costs for job 173 are as follows.

Variable production overheads are recovered at the rate of $3 per direct labour hour.

Fixed production overheads for the year are budgeted to be $200,000 and are to be recovered on the basis of the total of 40,000 direct labour hours for the year.

Other overheads, in relation to selling, distribution and administration, are recovered at the rate of $80 per job.

What is the total cost of job 173?

$______

Which of the following would be considered a service industry?

1. An airline company
2. A railway company
3. A firm of accountants

The following items may be used in costing batches.

1. Actual material cost
2. Actual manufacturing overheads
3. Absorbed manufacturing overheads
4. Actual labour cost

Which of the above are contained in a typical batch cost?

Which of the following would be appropriate cost units for a passenger coach company?

1. Vehicle cost per passenger-kilometre
2. Fuel cost for each vehicle per kilometre
3. Fixed cost per kilometre

The following information is available for a hotel company for the latest thirty day period.

What was the room servicing cost per occupied room-night last period, to the nearest cent? (to two decimals)

In what stage of the product life cycle are initial costs of the investment in the product typically recovered?