In short-term decision making, which TWO of the following are relevant costs?

GH manufactures a product using skilled labour and high quality materials. The company operates a standard costing system and a just-in-time (JIT) purchasing and production system. The standard selling price and variable costs for one unit of the product are as follows:


Calculate the following variances for October, taking account of the more detailed information regarding the labour mix:
(i) The total labour efficiency variance
(ii) The total labour mix variance
(iii) The total labour yield variance
Select the correct statements.

QR uses an activity based budgeting (ABB) system to budget product costs. It manufactures two products, product Q and product R. The budget details for these two products for the forthcoming period are as follows:

The total budgeted cost of setting up the machines is $74,400.
What was the budgeted machine set up cost per unit of product Q?

A company uses a standard costing system.
The company's sales budget for the latest period includes 1,500 units of a product with a selling price of
$400 per unit.
The product has a budgeted contribution to sales ratio of 30%.
Actual sales for the period were 1,630 units at a selling price of $390 per unit.
The actual contribution to sales ratio was 28%.
The sales volume contribution variance for the product for the latest period is:

A company is considering whether to launch a new product. The selling price and costs for each unit of the product are shown in table below:

The fixed overhead cost is based on expected production of 2,000 units.
The company will only launch the product if it is expected to be profitable.
To which of the following is the decision to launch the product most sensitive?