Riemay, SA Following Are the Actual Costs of Producing 35,000 Cards:
60

question 57

Essay

Riemay, SA., has done a cost analysis for its production of sports cards. The following activities and cost drivers have been developed: $\begin{array}{ll}\text { Activity } & \text { Cost Formula } \\\text { Photography } & £ 50+£ 35 \text { per labour hour } \\\text { Printing } & £ 25,000+£ 0.01 \text { per machine hour } \\\text { Setups } & £ 25 \text { per batch } \\\text { Purchasing } & £ 25+£ 25 \text { per purchase order }\end{array}$ Following are the actual costs of producing 35,000 cards:
60 labour hours; 500 machine hours; 5 batches; 30 purchase orders $\begin{array}{lr}\text { Photography } & ? \\\text { Printing } & £ 25,000 \\\text { Setups } & ? \\\text { Purchasing } & £ 770\end{array}$ The following variances were given in the activity performance report: $\begin{array}{lr}\text { Photography } & £10 \mathrm{~F} \\\text { Printing } & ? \\\text { Setups } & £20 \mathrm{U} \\\text { Purchasing } & ?\end{array}$

Describe the role of competition in driving market prices towards equilibrium.

Learn about the concept of shortages and surpluses and their causes.

Understand the conditions under which black markets emerge.

Understand the accounting process and journal entry preparation for stock dividends and stock splits.

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Definitions:

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