A. T plc has developed a new product, the TF8. The time taken to produce the first unit

 

was 18 minutes. Assuming that an 80% lerning curve applies, the time allowed for the

fifth unit (to two decimal places) should be

(A) 5.79 minutes

(B) 7.53 minutes

(C) 10.72 minutes

(D) 11.52 minutes.

Note: For an 80% learning curve ax_0.3219

B. Z plc operates an activity based costing (ABC) system to attribute its overhead costs

to cost objects.

In its budget for the year ending 31 December 2001, the company expected to

place a total of 2,785 purchase orders at a total cost of £94,690. This activity and its

related costs were budgeted to occur at a constant rate throughout the budget year,

which is divided into thirteen 4-week periods.

During the 4-week period ended 27 October 2001, a total of 202 purchase orders

was placed at a cost of £7,318.

The under-recovery of these costs for the 4-week period (to the nearest £1) was

(A) £34

(B) £416

(C) £443

(D) £450.

 

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