AS LEVEL OCTOBER 2024 TEST

MAXIMUM MARKS

TIME ALLOWED : 1 HOUR 20 MINS

SECTION A ( MULTIPLE CHOICE QUESTIONS ) 10 MARKS

Q1.

Q2.

10th
89
196000

175000

5000
4591751
Q3.

Q4.

84200 15700
18100
118000

118
180

200 118 82
Q5.

4800 units
2T
6400
290
72000 13343 96000
6400 4800 1600m

1600 25
40000

Q6.
Q7.

3rd 1st 2nd

cant M.lt 4 12 10

Q8.

575000 425000

350000 250000

1.5 V C unit
1.5 250000 375000

425000 375000 50000 fC

30500011.5 50000 507500
Q9.

9600 80030 fC
9600
49908

1000 30 14400
15600

Q10.

120

BElamite 11250
19002

MOSunite 18000 11250 6750

Most1.1 too 37.5

PLEASE TURN OVER FOR SECTION B

SECTION B – STRUCTURED QUESTIONS ( 50 MARKS)

Q1. ( 25 MARKS)

K Limited produces three di erent type of products . The following details are available

9 12 6

(a) Calculate the contribution per unit for each product ( 6 Marks)

Aye 35 9 121 14

Bee 43 12 14 17

lee 28 6 101 12
(b) Calculate the total profit for the month If the company fullfills the entire demand
( 3 marks)

Total Contribution 14 2400 17 3200 12 1800

109600

Total Profit 109600 63000

46600

K limited has been informed that only 35000 kgs of material will be available for the
month of January .

(c) Calculate the optimum profit that can be earned in the month of January ( 12
Marks)

Aye Bee Lee

Contlunit 14 17 12
kg unit 6 8 4
Cantly 2.33 2.125 3
Rank 2nd 3rd 1st

Product
Units by unit Total Ugs
Lee 1800 4 7200
Aye 2400 6 14400
Bee 1675 8 13400
35000
 Total Contribution
Aye 14 2400 33600
Bee 17 16751 28475
Lee 12 1800 21600
83675
Less fixed Costs 63000

Optimum Profit 20675

(d) Calculate the additional profit to be made if the shortfall in materials is made up
by the overseas supplier ( 4 Marks)

3200 1675 1525 1 remaining units of Bee

Revised Cant unit of Bee 43 26 81 13
8.2

Additionallaubution
Bee 1525 82 12505
less Additional F C 18001
Additional Profit
4501
Q2. ( 25 MARKS)

The Padel Factory makes a single type of padel racket . The business started in January
2023 . Following information is available for the year ending 31 st December 2023 and
31st December 2024.

2023 2024
Selling Price per Unit $80 $95
Direct Material per unit 2 kg @$5 per kg 2kg@$6 per kg
Direct Labour per unit $17 $19
Variable Production Overheads per unit $5 $8
Fixed Production Overheads per annum $60000 $63000
Variable Selling Overheads per unit $3 $3
Fixed Selling Overheads per annum $20000 $22000
Units Produced 5000 6000
Units Sold 4100 6300
1 Inn Poounits Goounits
Required :

(a) Calculate the breakeven point in units for 2023 and 2024 . Round o your answer
to the nearest whole number. ( 6 Marks)

BE 2023 60000 20000

80 10 17 5 31

1777.7 1778 units

B F 2024 63000 22000

95 12 19 8 31

1603.7 1604 units

 In DMT DL YPOH
10 17 5 32 2022
12 19 8 39 2023
(b) Prepare a marginal costing profit statement for 2021 and 2022 in as much detail
as possible . ( 17 Marks)

2022 2023
Sales 328000 598500
Less Variable Cost

Op Iny 28800
DM 50000 72000
114000
DL 85000

VPOH 25000 48000

VSOH 12300 18100
1 In 288001143500 23400 2583001
Contribution 184500 340200
less filled lost

FPOH 60000 63000

FSOH 20000 80000 22000 85000

Profitforthe 104500 25520
year
 (c) Explain the di erence between variable cost and fixed cost ( 2 Marks)

Variable last is instant perunit and keeps

on increasing in total as output increases

Fixed cost remains same throughout

the year whether the tompany produces
anything or not

END OF PAPER .. GOODLUCK 