TP makes wedding cakes that are sold to specialist retail outlets which decorate the cakes according to the customers' specific requirements. The standard cost per unit of its most popular cake is as follows:The general market prices at the time of purchase for Ingredient A and Ingredient B were $23 per kg and $20 per kg respectively. TP operates a JIT purchasing system for ingredients and a JIT production system; therefore, there was no inventory during the period.What was the material yield variance?
Answer(s): D
FG Enterprises manufactures and sells three products. There are 4,400 kg of Material X available in the next period. Material X is used in the manufacture of all three products. The following data is available for the next period.What is the optimal production plan for the next period in order to maximise profit?
Answer(s): B
GH manufactures a product using skilled labour and high quality materials. The company operates a standard costing system and a just-in-time (JIT) purchasing and production system. The standard selling price and variable costs for one unit of the product are as follows:Prepare a statement that reconciles the budgeted contribution with the actual contribution for October. Your statement should show the variances in as much detail as possible.What was the actual contribution for October?
A master budget comprises the...
JDM is considering whether to go ahead with the launch of a new product. Profit from the new product is dependent on the level of demand.The following table shows the estimated profits and their respective probabilities at different levels of demand.The company could still cancel the launch of the product but would incur a cost of $7,000.What is the maximum amount that the company should pay for perfect information about demand for the product?
Answer(s): A
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