A company manufactures headphones.
70% of production costs are prime costs. Production overhead costs are driven by the number of headphones produced.
Which costing system would be most appropriate for product profitablilty analysis?

A company is basing its budget on predicted sales of one of its products. They have tasked you with forecasting the sales in year 2. The company has found that a fairly accurate prediction can be found when the trend is calculated like so:
a = 10,000
b = 2,000
The sales of year 1 were affected by seasonal variation and were as follows:
Q1:12,500
Q2:14,200
Q3:15,400
Q4:19,650
You use a multiplicative model and round percentages to the nearest whole percent.
Select ALL the correct quarterly forecasts of year 2 from the list.

A company makes a product using two materials, X and Y.
The standard materials required for one unit of the product are:

What is the direct material mix variance for Material X, using the individual valuation basis?

Your company operates using TQM. As the accountant you have been tasked with producing a quality report so that management can understand how well their new range of products is being received and how the quality of the products has improved. In order to produce the report you have requested information from different departments, but you soon realise not all the information is relevant. You have information regarding the following:
Cost of downtime Training costs Environmental costs Customer returns and refunds Number of defects per unit Which pieces of information are relevant to your report? Select ALL that apply.

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.