MAC3701
Assignment 1 Semester 2 2022
Unique #:
This document includes:
• Helpful guidelines
• Explanations and/ or calculations
• Study-guide and /or text book references were
necessary Solutions
Terms of use:
• To be used ONLY for comparison purposes.
Do not duplicate or distribute without written permission from the author
, MAC3701
ASSIGNMENT 1
SEMESTER 2 2022
(Q1) Which of the following costs would NOT be classified as a production
overhead cost in a furniture manufacturing company?
the cost of the wood used to manufacture the furniture
(Q2) Flexi Inc’s opening inventory in units that would have been used in the
production budget for the financial year ending 31 August 2023 is:
Budgeted production (20 000 x 12) = 240 000
Budgeted closing inventory (10% x 240 000) = 24 000
Budgeted losses (5% x 240 000) = 12 000
Opening inventory = 24 000 + 300 000 +12 000 -240 000
= 96 000
(Q3) The total overhead cost that would be allocated to Product Alpha on a
traditional costing system using labour hours as an allocation would be:
𝑥 7 500 000
= 1 500 000
(Q4) Based on an activity-based costing system, the activity rate for quality
inspection is ________ per inspection.
Number of quality inspections:
Alpha (30 000/25) 1 200
Beta (90 000/50) 1 800
TOTAL 3 000
Activity rate =
Assignment 1 Semester 2 2022
Unique #:
This document includes:
• Helpful guidelines
• Explanations and/ or calculations
• Study-guide and /or text book references were
necessary Solutions
Terms of use:
• To be used ONLY for comparison purposes.
Do not duplicate or distribute without written permission from the author
, MAC3701
ASSIGNMENT 1
SEMESTER 2 2022
(Q1) Which of the following costs would NOT be classified as a production
overhead cost in a furniture manufacturing company?
the cost of the wood used to manufacture the furniture
(Q2) Flexi Inc’s opening inventory in units that would have been used in the
production budget for the financial year ending 31 August 2023 is:
Budgeted production (20 000 x 12) = 240 000
Budgeted closing inventory (10% x 240 000) = 24 000
Budgeted losses (5% x 240 000) = 12 000
Opening inventory = 24 000 + 300 000 +12 000 -240 000
= 96 000
(Q3) The total overhead cost that would be allocated to Product Alpha on a
traditional costing system using labour hours as an allocation would be:
𝑥 7 500 000
= 1 500 000
(Q4) Based on an activity-based costing system, the activity rate for quality
inspection is ________ per inspection.
Number of quality inspections:
Alpha (30 000/25) 1 200
Beta (90 000/50) 1 800
TOTAL 3 000
Activity rate =
