1. As it relates to Factory Utility Costs, use the least squares method to find:
2. Variable cost per unit
3. The total fixed cost (9.5 marks)
4. Create a standard cost card for both products showing the Marginal Cost per unit and the Full Cost per unit. (6 marks)
5. Calculate the Closing stock for both products. (4 marks)
6. Prepare a Marginal Costing Statement for the month. (12 marks)
7. Prepare an Absorption Costing Statement for the month. (16.5 marks)
8. Reconcile the profit as per Absorption Costing Statement with the profit as per Marginal Costing Statement. (4 marks)
9. For both products, calculate the following variances:
10. Direct Material Price Variance
11. Direct Material Usage Variance
12. Direct Labour Rate Variance
13. Direct Labour Efficiency Variance (16 marks
14. Suggest two (2) possible reasons for each of the variances you calculated. (4 marks)
15. Reconcile the Profit as per Marginal Costing Statement with the Actual Profit (based on results calculated from part 5). (3 marks)
16. Reconcile the Profit as per Absorption Costing Statement with the Actual Profit (based on results calculated from part 6) (4 marks)
17. Determine the break-even points and margin of safety in (units and sales revenue) for both Plotex and Ploten. (4 marks)
18. Using the results calculated in activity 12 explain break-even point. (2 marks)
19. Define margin of safety and its impact on the amount of goods produced. (2marks)

Show all workings.

[Total marks 100]