(Total: 4 mar SECTION A: TRUE/FALSE and MCQ (Circle one answer) 1- Prime cost is the sum of direct labor and manufacturing overhead. True/ False ass TrA-enitnuopA lohepono/M bno teo lo alotnemobnu 2- Depreciation on the company's retail outlets is an example of product cost. True/ False True/False Questions +nndard 31 man SECTION B: PROBLEM SOLVING Question 1 (7 Marks Hico Company is manufacturing special storage containers for gardens. Data on the three most popular products (Small, Deluxe, and Big) is below. Big Deluxe Small $255 $300 $140 $200 $55 Selling price per unit. Variable cost per unit. Plastic injection molding machine processing time required to produce one unit $60 8 minutes 10 minutes 4 minutes 16 kg 8 kg 14 kg Plastic quantity required per unit (in kg) Required: a. The total time required on the plastic injection moulding machine is the constraint in the production process. Which product would be the most and least profitable use of the constraint? Rank the 3 products and show your calculations. (2 marks) 3:15 PM Which product has the largest unit contribution margin? d. Explain why the product with the largest unit contribution margin is not necessaril the most profitable product if the constraints from part 1 and part 2 of this question apply (2 mark 3:15 PM (mY pur snpoad apa a ggoad a pea jo Augm pRpmou mb S12000 Saler Vari Fixed espemsn INet operating incomen he company has no beginning or ending inventories and produced nd sold 20,000 units during he Reguired 2 marks) What is the company's contribution margin ratio a 3:15 PM Question 3 BRQ is Ifsales increase by 100 units, by how much should net operating income increase 3 mad c. (1 m d. How many units would the company sell to attain a target profit of $125,000? s Regired the divsion's mag Whr mark? What is the division's tunove 3:15 PM What is thbe division's returnm on investment (ROD c. d. What is the division's residual income? Explain common criticisms of ROI and state why the residual inco indicator than the ROI 3:16 PM fir When is a planned bdeet (static) perfomance rport c. equired: Prepare a planned budget (static budget) for Makani Clinic for Februsry a. aMa Prepare a performance report for revenue and spending variances for February indicating whether they are Favourable (F) or Unfavourable (U) (7 Marks) Question 4 Makani Clinic gmeates veues though diag 2019, he Cinic budgmed to be visitel by 3,500 patients The actl er of painsw however, 3,650 The dinic has provided you with the Sollowing bugn daa for Febary 0ar nd a tof patics. During Febary Fhed diement per Variable dement per month Revenue patient $23.60 Personnel $26,100 expenses $5.90 Medical supplies 800 4.00 Occupancy expenses 1,00 6,300 Administrative 0.20 4.000 expenses $11.10 $37 200 Total expenses The actual results for February were as follows $84,290 Revenue $47,075 Personnel expenses $14,700 Medical supplies $10,110 $4,920 Occupancy expenses Administrative expenses 3:16 PM
