1. A company produces a product known as Hydro. The company uses a standard costing system and provides you with the following information:

Direct materials required to produce 1 unit of Hydro: 10 kgs

Standard cost of direct materials: $6 per kg

Budgeted cost of direct materials: $5.75 per kg

Normal wastage while producing one unit of Hydro: 0.5 kgs

Based on the above information, what is the standard direct materials cost per unit of product Hydro?

2. Which of the following characteristics does Activity Based Costing NOT have?

Select one:

1.An increased level of complexity and cost to run

2.The simplicity of the system makes it easy to implement

3.The overhead cost application bases are likely to be more accurate cost drivers than would be the case in conventional costing systems

4.A greater number of overhead cost application bases compared to conventional costing systems

3. Juventus FC Pty Ltd is a manufacturer of a range of football boots. The following is a list of activities, costs and quantities of activity drivers for a number of activities that occur in the factory.

Activity	Activity cost	Activity driver	Quantity of activity driver
Cut leather	$7,000	Number of batches	500
Load machines	$10,400	Number of batches	500
Auto. Boot manufacture	$36,000	Number of machine hours	4,500
Finalise and check	$24,000	Number of labour hours	2,000

Under an activity-based costing system, what is the overhead rate per unit of the activity driver for 'Load machines'?

Select one:

A. $18.4

B. $14

C. $92

D. $20.8