1. Whiterod Limited make various types of metal shelving. Its budget for the current year shows a total of 712,000 for production overheads analysed by activity as follows. Activity: Setting-up machinery; cost pool: 220,000; Cost Driver: Machinery set-up; Annual number of cost drivers: 2,750 Activity: Purchasing materials; cost pool: 32,000; Cost Driver: Purchase order ; Annual number of cost drivers: 250 Activity: Controlling quality; cost pool: 90,000; Cost Driver: quality inspection; Annual number of cost drivers: 4,500 Activity: Operating machinery; cost pool: 330,000; Cost Driver: Machine hour ; Annual number of cost drivers: 66,000 Activity: Maintaining machinery; cost pool: 40,000; Cost Driver: Maintenance hour; Annual number of cost drivers: 800 An order from a customer for 60,000 square metres of shelving caused 16 machinery set-ups, 32 purchase orders, 13,600 hours of machining, 48 quality inspections and 24 maintenance hours. The order used 30,000 of materials and 20,000 of direct labour. The amount of production overheads attached to this order by the ABC system is: (2 Points) 2. Whiterod Limited make various types of metal shelving. Its budget for the current year shows a total of 712,000 for production overheads analysed by activity as follows. Activity: Setting-up machinery; cost pool: 220,000; Cost Driver: Machinery set-up; Annual number of cost drivers: 2,750 Activity: Purchasing materials; cost pool: 32,000; Cost Driver: Purchase order ; Annual number of cost drivers: 250 Activity: Controlling quality; cost pool: 90,000; Cost Driver: quality inspection; Annual number of cost drivers: 4,500 Activity: Operating machinery; cost pool: 330,000; Cost Driver: Machine hour ; Annual number of cost drivers: 66,000 Activity: Maintaining machinery; cost pool: 40,000; Cost Driver: Maintenance hour; Annual number of cost drivers: 800 An order from a customer for 60,000 square metres of shelving caused 16 machinery set-ups, 32 purchase orders, 13,600 hours of machining, 48 quality inspections and 24 maintenance hours. The order used 30,000 of materials and 20,000 of direct labour. If, instead of ABC, Whiterod used an Absorption costing system based on a single machine hour Overhead Absorption Rate, the production cost of one square metre of shelving would be: 17 Point) 5. Break-even point occurs at 40% of total capacity, margin of safety will be (2 Points) 60% 40%. 85%. 80%. 6. A crockery company makes china cups and saucers. a cup uses 100g of clay; a saucer uses 150g of clay; it plans to make 450,000 cups and 280,000 saucers; - there is no opening inventory; it would like to have closing inventories of 4,000kg of clay How much clay would they need to buy? (2 Points) 87,000 kg 83,000 kg 9950n ka 1 stc ksa. 9:08 AM @ 10 94%