1. Explain the effect of a decrease in the level of activity (cost driver) on:

(i) total fixed cost

(ii) variable cost per unit of activity.

Give three examples of non-financial information that could be useful for the managers of Sydney Trains in minimising train delays on the rail network in the next six months

1. Refer to the following data:

Direct material used $160 000

Marketing costs $ 5 000

Indirect labour $ 6 000

Depreciation on factory equipment $ 50 000

Wages of assembly line workers $ 30 000

Factory cleaners wages $ 25 000

Depreciation of computers used in a sales department $20 000

Oil consumed by sewing machines $ 5 000

Required:

Determine each of the following costs: (list the costs under each cost category when calculating the answer).

i) Product costs (1.5 marks)

ii) Period costs (0.5 mark)