43   The purchase price of an item of inventory is $25 per unit. In each three month period the usage of the item is

20,000 units. The annual holding costs associated with one unit equate to 6% of its purchase price. The cost of

placing an order for the item is $20.

What is the Economic Order Quantity (EOQ) for the inventory item to the nearest whole unit?

A    730

B    894

C    1,461

D    1,633

44   A factory consists of two production cost centres (P and Q) and two service cost centres (X and Y). The total allocated

and apportioned overhead for each is as follows:

P                 Q                   X                    Y

$95,000           $82,000             $46,000              $30,000

It has been estimated that each service cost centre does work for other cost centres in the following proportions:

P             Q             X            Y

Percentage of service cost centre X to          50            50             -            -

Percentage of service cost centre Y to          30            60            10            -

The reapportionment of service cost centre costs to other cost centres fully reflects the above proportions.

After   the   reapportionment   of   service   cost   centre   costs   has   been   carried   out,   what   is   the   total   overhead   for

production cost centre P?

A    $124,500

B    $126,100

C    $127,000

D    $128,500

45   The following statements relate to responsibility centres:

(1)  Return on capital employed is a suitable measure of performance in both profit and investment centres.

(2)  Cost centres are found in manufacturing organisations but not in service organisations.

(3)  The manager of a revenue centre is responsible for both sales and costs in a part of an organisation.

Which of the statements, if any, is true?

A    1 only

B    2 only

C    3 only

D    None of them

46   A company has recorded the following variances for a period:

Sales volume variance                     $10,000 adverse

Sales price variance                       $5,000 favourable

Total cost variance                       $12,000 adverse

Standard profit on actual sales for the period was $120,000.

What was the fixed budget profit for the period?

A    $137,000

B    $103,000

C    $110,000

D    $130,000

47   A Company manufactures and sells one product which requires 8 kg of raw material in its manufacture. The budgeted

data relating to the next period are as follows:

Units

Sales                                      19,000

Opening inventory of finished goods          4,000

Closing inventory of finished goods          3,000

Kg

Opening inventory of raw materials         50,000

Closing inventory of raw materials         53,000

What is the budgeted raw material purchases for next period (in kg)?

A    141,000

B    147,000

C    157,000

D    163,000