Syllabus C: Cost accounting techniques

SkyDrop, a drone delivery service, is implementing Activity-Based Costing (ABC). They have identified 'Drone Battery Swapping' as a major overhead activity pool. Which of the following would be the most appropriate cost driver for this activity?

A specialized medical device manufacturer requires 18,000 microchips per year. The cost to place a single order is $200. The holding cost per microchip per year is $5. Calculate the Economic Order Quantity (EOQ). (Enter number only, no commas or symbols)

VertiFarm Inc. operates an indoor vertical farm. In its first month of operations, it produced 10,000 units of lettuce and sold 8,000 units. The fixed production overheads were $20,000. If VertiFarm uses absorption costing instead of marginal costing, how will its reported profit differ?

A rare-earth mineral refinery processes raw ore into two main joint products (Neodymium and Praseodymium) and one by-product (Slag). Which of the following are acceptable accounting treatments for the by-product? (Select all that apply)

A robotics assembly plant budgets its annual production overheads at $450,000. The plant is highly automated and uses machine hours to absorb overheads. Budgeted machine hours for the year are 90,000 hours. During the year, actual overheads were $460,000 and actual machine hours worked were 95,000 hours. Calculate the predetermined Overhead Absorption Rate (OAR) per machine hour. (Enter number only, no commas or symbols)

A synthetic meat laboratory uses process costing. During the month, 5,000 kg of material were input into the process. Normal loss is estimated at 10% of input. Actual output transferred to finished goods was 4,200 kg. What is the abnormal loss or abnormal gain in kg?