A company sells and services photocopying machines. Its sales department sells the machines and consumables, including ink and paper, and its service department provides an after sales service to its customers. The after sales service includes planned maintenance of the machine and repairs in the event of a machine breakdown. Service department customers are charged an amount per copy that differs depending on the size of the machine.
The company's existing costing system uses a single overhead rate, based on total sales revenue from copy charges, to charge the cost of the Service Department's support activities to each size of machine.
The Service Manager has suggested that the copy charge should more accurately reflect the costs involved. The company's accountant has decided to implement an activity-based costing system and has obtained the following information about the support activities of the service department:

Calculate the annual profit per machine for each of the three sizes of machine, using the current basis for charging the costs of support activities to machines.

The following details are available for a company's production overhead costs at different levels of activity:

The company uses the high-low method to calculate its budgeted production overhead costs.
What is the budget for production overhead costs at an activity level of 8,500 units?
Give your answer as a whole number.

A company accountant is trying to determine the optimum production plan for the period using linear programming.
The accountant has correctly formulated the linear programming problem as follows:
Variables (products): x and y
Objective function: Maximise contribution, C = 10x + 15y
Material constraint: 4x + 6y ≤ 500 (kg)
Labour constraint: x + 2y ≤ 350 (hours)
Machine constraint: 10x + 4y ≤ 1,500 (hours)
x constraint: 50 ≤ x ≤ 200
y constraint: y ≥ 0
Which of the following statements is true?

A company has only 10,100 hours of skilled labour available next period.
Data for its three products for next period are as follows.

At least 500 units of each product must be sold each period.
No inventories are held.
How many units of Product X should be manufactured next period in order to maximise profit?

The breakeven point in units, in a multiple product context, is calculated using which of the following formulae?