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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Theola

1 months ago

Wait, is this a trick question? What if the answer is actually $6.50, and they're just rounding it to the nearest dollar? Gotta watch out for those sneaky accountants, am I right?

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Elliott

1 days ago

I think you might be onto something with that theory.

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Eleni

7 days ago

A) $6

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Alishia

2 months ago

Why do you think it's $8?

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Levi

2 months ago

I disagree, I believe the answer is C) $8.

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Ashley

2 months ago

Hmm, this is a tricky one. I'm going to go with D) $9 just to be safe. You can never be too careful with these certification exams, you know? Gotta cover all the bases.

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Crissy

1 months ago

I agree, let's go with D) $9 and see how it goes.

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Alishia

1 months ago

I think you're right, D) $9 seems like a safe choice.

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Alishia

2 months ago

I think the answer is B) $7.

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Georgeanna

2 months 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

2 months 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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Tess

29 days ago

Exactly, it's a simple calculation once you break down the costs. The answer is definitely C) $8.

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Arthur

1 months ago

So, if we add up all the variable costs, we get the marginal cost per unit of $8.

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Olive

1 months ago

Yes, that's correct. The direct material and direct labor costs are variable, along with part of the production overhead.

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Steffanie

1 months ago

I agree, the answer is C) $8. It's just a matter of adding up the variable costs.

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Ilona

2 months 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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Tiara

1 months ago

I agree with the first Tiara, it should be $8 per unit.

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Tiara

2 months ago

I think it's actually $7 per unit.

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Tiara

2 months ago

I believe the marginal cost per unit is $8 as well.

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