CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 88 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam

Question #: 88
Topic #: 1

A company produces a single product for which the following cost data are available.

Analysis by the management accountant has shown that 100% of direct material cost and 50% of direct labour cost are variable costs. 50% of production overhead and 100% of selling and distribution overhead are variable costs.

What is the marginal cost per unit?

A$6

B$7

C$8

D$9

Show Suggested Answer

Suggested Answer: B

by Casie at Jan 14, 2025, 09:07 AM

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Georgeanna

2 days ago

I'm going with B) $7. The question is trying to trick us by providing a lot of unnecessary information. The key is to focus on the variable costs and ignore the fixed costs. Simple as that!

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Chara

5 days ago

This looks straightforward. The answer must be C) $8. I'm confident in this because the question provides a breakdown of the variable costs, and it's just a matter of adding them up to get the marginal cost per unit.

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Ilona

10 days ago

I think the marginal cost per unit is $8. The question clearly states that 100% of direct material cost and 50% of direct labour cost are variable costs, and 50% of production overhead and 100% of selling and distribution overhead are variable costs. Adding these up gives us a total variable cost of $8 per unit.

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