Which of the following explain why standard costing is less appropriate in the contemporary business environment?
1. In a continuous improvement environment standard costing can restrict the impetus to remain as cost competitive as rivals.
2. Fixed overhead variances are less relevant as fixed costs represent a decreasing proportion of total manufacturing cost.
3. In a just-in-time environment there are fewer costs to control.

PQR is preparing the production budget for one of its products, the DX1, for the forthcoming year.
The following information is available:

How many units of the DX1 will need to be produced in the forthcoming year?

Budgeted sales and production for Product X for this period are 12,000 units.
The standard cost and selling price for a single unit of the product are:

The fixed production overhead expenditure variance is:

A company produces trays of pre-prepared meals that are sold to restaurants and food retailers. Three varieties of meals are sold: economy, premium and deluxe.


Calculate, for the original budget, the budgeted fixed overhead costs, the budgeted variable overhead cost per tray and the budgeted total overheads costs.

A company manufactures a machine. The machine is made from two types of raw material and is assembled in a factory using skilled labour. The engine for the machine is purchased from an outside supplier.
The following costs relate to the manufacture of one machine:

What is the finished goods inventory valuation for one machine using throughput costing?