A-LevelAccountingCostingOct/Nov 2010Paper 1 Q271 Mark

A factory produces a product with a variable cost of $0.60 per unit. Fixed costs are $15 000 per quarter, including rent of $6000 per quarter. If more than 20 000 units are made per quarter, additional space is required which increases the rent by 50%. What is the total cost per unit of producing 30 000 units in a quarter?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is D: $1.20.

Q: What topic does this question test?

This question tests Costing in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A$0.60

B$0.90

C$1.10

D$1.20

✓ Correct Answer

The correct answer is D: $1.20

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

This multiple-choice question tests Costing in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2010 examination, Paper 1 Variant 2.

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