1.AssumeBeltorhas opening work in progress of 30,000 units in June, started 200,000 units in June and had ending work in progress of 15,000 units on 30 June.

How many units were completed and transferred out during June?

2.Implementing Activity Based Costing in a service entity is more complex because:

I.Service businesses have a low proportion of overhead in their total costs

II.Service businesses tend to have a higher level of facility costs than most manufacturers

III. It is often difficult to identify service activities because they are non-repetitive

Select one:

A. I only

B. II and III

C. I, II and III

D. II only

3.

Assume that the direct cost per smartphone is:

• Direct material $60
• Direct labour $35

Assume that the factory where the phones are made is also used to make tablets and the annual costs of the factory (rent, insurance, maintenance etc) are $8 million.

How much of this $8 million cost should be allocated to each smartphone made?

The factory is expected to make 200,000 smartphones and 100,000 tablets in the year. It takes 2 hours to make a smartphone and 4 hours to make a tablet?