Bank

Welcome to your Bank P1 / MA

Name
1. 

1) Which of the following is an example of fixed cost?

2. 

2) A manufacturing company recorded the following costs in March for Product M:
Direct Materials - £18,000
Direct Labour - £4,700
Variable Production Overhead - £3,200
Fixed Production Overhead - £17,200
Variable Selling Costs - £3,700
Fixed Distribution Costs - £14,500
Total Costs - £61,300

During March 3,000 units of Product M were produced but only 1,700 units were sold. At the beginning of March there was no inventory.
The value of the inventory of Product M at the end of March using absorption costing was:

3. 

3) A business manufactures a single product which it sells for £60. The budgeted data are as follows:
Production and sales volume - 1,500 units
Material Costs - £10,250
Direct Labour Cost - £7,800
Production Overhead - £30,250
Non-Production Overhead - £21,500

Actual production volume and costs were as budgeted but the actual sales volume achieved was 1,300 units. There was no inventory at the beginning of the period.
What is the profit for the period using absorption costing?

4. 

4) An organisation uses absorption costing. The budgeted fixed production overheads for the company for the latest year were $300,000 and the budgeted output was 200,000 units. At the end of the company’s financial year the total of the fixed production overheads was $210,000 and the actual output achieved was 150,000 units.

The under/over absorption over overheads was:

5. 

5) Which of the following is an advantage of using Absorption Costing?

6. 

6) A manufacturing company recorded the following costs in March for Product M:
Direct Materials - £18,000
Direct Labour - £4,700
Production Overhead - £20,400
Non-Production Overhead - £18,200
Total Costs - £61,300

During March 2,000 units of Product M were produced but only 1,700 units were sold. At the beginning of March there was no inventory.
The value of the inventory of Product M at the end of March using marginal costing was:

7. 

7) Using full cost pricing, what is the selling price of the following product?
Direct Material - $18
Direct Labour - $12
Variable Production Overhead - $15
Fixed Production Overhead - $20
Mark up - 20%

8. 

8) Using the information below:
Direct Material - $18
Direct Labour - $12
Variable Production Overhead - $15
Fixed Production Overhead - $20
Mark up - 20%
What is the selling price of the production using Marginal cost plus pricing?

9. 

1) Identify the cost drivers to the following cost categories:
Categories:
1. Marketing
2. Client Meetings
3. Data Input
4. Analysis & Research
5. Training & Development
Cost Driver:
A. No. of Clients
B. Research Hours
C. No. of Staff
D. Computer hours
E. No. of client lunches

10. 

2) Using the following information, what is the cost per driver of Inspections?
Total Overheads - £250,000
Inspection costs - 25%
Client Meeting costs - 75%
No. of Inspections - 40
No. of Clients - 70

11. 

3) To produce Product X, it takes 15 inspections.
Using the information provided in Question 2, what are the total overheads applicable to product X?

12. 

4) Which of the following is an advantage of ABC?

1. Better cost control
2. Fairer allocation of costs
3. Can be used in complex situations
4. More accuracy

13. 

5) Which of the following is a disadvantage of ABC?

1. Not always relevant
2. Need to choose appropriate drivers and activities
3. Complex
4. Inexpensive

14. 

1) Which of the following is a benefit of JIT (Just In Time)?

1. Better quality
2. Less storage needed
3. Fewer bottlenecks
4. Initial set up costs

15. 

2) The following information relates to the single product made by NY Ltd.
Selling price per unit - $21
Direct material cost per unit - $12
Max. demand (units) per period - 10,000
Time required (hours) in Process A, per unit - 0.5
Time required (hours) in Process B, per unit - 1.5
The capacities are 45,000 hours in Process A and 33,000 hours in process Y
The total factory costs are $150,000 in the period.
Identify the bottleneck process.

16. 

3) The following information relates to the single product made by NY Ltd.
Selling price per unit - $21
Direct material cost per unit - $12
Max. demand (units) per period - 10,000
Time required (hours) in Process A, per unit - 0.5
Time required (hours) in Process B, per unit - 1.5
The capacities are 45,000 hours in Process A and 33,000 hours in process Y
The total factory costs are $150,000 in the period.
Calculate the throughput contribution.

17. 

4) Using the following information which relates to the single product made by NY Ltd.
Selling price per unit - $21
Direct material cost per unit - $12
Max. demand (units) per period - 10,000
Time required (hours) in Process A, per unit - 0.5
Time required (hours) in Process B, per unit - 1.5
The capacities are 45,000 hours in Process A and 33,000 hours in process Y
The total factory costs are $150,000 in the period.
Calculate the throughput accounting ratio.

18. 

5) Which of the following would you do to improve throughput accounting ratio?

19. 

1) Which of the following is a characteristic of a modern manufacturing environment?

1. Global Environment
2. Greater focus on cost reduction
3. Better customer focus
4. Less employee participation

20. 

2) What does OPT stand for?

21. 

3) Which three of the following are the principles of TQM (Total Quality Management)?

1. Right Time first
2. Materials Requirements Planning
3. Continuous Improvement
4. Customer Focus

22. 

4) Which of the following is a cost of quality?

1. Prevention Costs
2. Appraisal Costs
3. Internal failure costs
4. External failure costs

23. 

5) Which of the following is a requirement of a pull system?

1. High Quality
2. Flexibity
3. Less speed
4. High Costs

24. 

6) Which of the following is a disadvantage of a JIT (Just In Time) System?

25. 

1) Using the information below, calculate contribution.
Selling Price - $30
Variable Costs - $12
Fixed Costs - $520,000
Budgeted Production - 40,000 units

26. 

2) Using the following information:
Selling Price - $30
Variable Costs - $12
Fixed Costs - $520,000
Budgeted Production - 40,000 units 
How many units need to be sold to achieve a profit of $200,000?

27. 

3) Using the following information:
Selling Price - $30
Variable Costs - $12
Fixed Costs - $520,000
Budgeted Production - 40,000 units.
How much revenue is required to achieve a profit of $200,000?

28. 

4) Using the following information:
Selling Price - $30
Variable Costs - $12
Fixed Costs - $520,000
Budgeted Production - 40,000 units.
What is the break even point in units?

29. 

5) In a situation where a company sells more than one product, how do you rank the products?

30. 

1) In relevant costing, when costing plant, which of the following is included?

1. Depreciation
2. Hire Costs
3. Sunk Cost
4. Installation Costs

31. 

2) The following cost is not a relevant cost;
The salary to be paid to an engineering supervisor who will oversee the production of a new product. This role will be created specifically for this new product and the $50,000 salary will be a fixed cost. This cost will not be included in the cost of the project.

32. 

3) Product X requires 500Kg of Material V. 300Kg of this material is currently in stock, this was purchased at a cost of $2 per Kg, it could be sold for $2.75 per Kg and current purchase price is $4 per Kg. At the moment, the company will not be using the material in any other product.
What is the relevant cost of Material V?

33. 

4) CAD Co manufactures product P. The following relates to product P.

Selling Price £90
Requirement per unit
Labour : 2 hours @ £12 per hour
Material X : 1.5 litres @ £4.50 per litre
Material Y : 1 Kg @ £7.50 per litre
Machine hours : 10
Variable Overhead : £2.50 per labour hour
Variable Overhead : £2.50 per machine hour
Buying in Product P: $65

Should CAD Company:

34. 

5) Other than the buy in option being lower than production costs of a product, which of the following non-financial factors should you consider?

1. Use of spare capacity
2. Workforce reaction
3. Reliability of the outsourcer
4. Quality considerations

35. 

1) What is the rule when dealing with a scarce resource?

36. 

2) Which of the following is an advantage of outsourcing?

1. Responds to fluctuations
2. Loss of control
3. Dependence on a supplier for quality
4. Focus of core competencies

37. 

3) A manufacturing company operates process F from which four products emerge. Each of the four products can either be sold or processed further. After further processing, each product can enter the market at a higher selling price. 
Which of the following is required to determine whether the product should be processed further?

1. Total cost of process F
2. The basis of apportioning the cost of process F over the four products
3. Unit selling price of each product after processing further
4. The number of outputs from process F

38. 

4) What is the first step when dealing with a shut-down decision?

39. 

1) Two constraint lines 8x + 20y = 18,000 and x + y = 210 intersect at a point B on the graph. The objective function is Profit = 70X + 100Y, what is the profit level at point B?

40. 

2) Which of the following best describes slack?

41. 

1) Which of the following describes a standard cost?

42. 

2) An ideal standard cost is:

43. 

3) Which of the following is a problem with a flexed budget?

44. 

4) Which of the following can cause idle time?

45. 

5) Managers are responsible for which of the following costs:

46. 

1) Moonshine Ltd had budgeted sales of 200 units at $12.50 each. Variable cost per unit was $9 and there were no fixed costs. The actual sales were 250 units at $10 each and cost were as expected.

What is the sales price variance?

47. 

2) Moonshine Ltd had budgeted sales of 200 units at $12.50 each. Variable cost per unit was $9 and there were no fixed costs. The actual sales were 250 units at $10 each and cost were as expected.

What is the sales volume variance?

48. 

3) Jackanory Ltd manufactures product duck with the following budgeted material costs per unit;
3Kg of material X at $15/Kg

Actual Results:
Output 500 units
Material purchased and used 1,100Kg
Material cost $10,450

What is the materials price variance?

49. 

4) Jackanory Ltd manufactures product duck with the following budgeted material costs per unit:
3Kg of material X at $15/Kg

Actual Results:
Output 500 units
Material purchased and used 1,100Kg
Material cost $10,450

What is the materials usage variance?

50. 

5) Lulu Ltd makes product f and has the following budgeted information

Budgeted Production - 2000 units
Labour hours per unit - 6
Labour rate per hour - $16
Actual Results
Output - 2200 units
Hours paid for and worked - 6,800 hours
Labour cost - $56,600

What is the labour rate variance?

51. 

6) Lulu Ltd makes product f and has the following budgeted information

Budgeted Production - 2000 units
Labour hours per unit - 6
Labour rate per hour - $16
Actual Results
Output - 2200 units
Hours paid for and worked - 6,800 hours
Labour cost - $56,600

What is the labour efficiency variance?

52. 

7) The budgeted output for Lily Lace Ltd for June was 1500 units of product P. Each unit requires 3 direct labour hours. Variable overheads are budgeted at $4.50 per labour hour.

Actual results:
Output - 1350 units
Labour hours worked - 2970 hours
Variable overheads - $8,316

What is the variable overhead rate variance?

53. 

8) The budgeted output for Lily Lace Ltd for June was 1500 units of product P. Each unit requires 3 direct labour hours. Variable overheads are budgeted at $4.50 per labour hour.

Actual results:
Output - 1350 units
Labour hours worked - 2970 hours
Variable overheads - $8,316

What is the variable overhead efficiency variance?

54. 

9) The following information is available for a company for Period 8:

Fixed production overheads - £11,480
Units - 3,280
The standard time to produce each unit is 1.5 hours
Actual
Fixed production overheads - £12,100
Units - 3,230
Labour hours - 6,300 hours

What is the fixed overhead expenditure variance?

55. 

10) The following information is available for a company for Period 8:

Fixed production overheads - £11,480
Units - 3,280
The standard time to produce each unit is 1.5 hours
Actual
Fixed production overheads - £12,100
Units - 3,230
Labour hours - 6,300 hours

What is the fixed overhead volume variance?

56. 

11) The following information is available for a company for Period 8:

Fixed production overheads - £11,480
Units - 3,280
The standard time to produce each unit is 1.5 hours
Actual
Fixed production overheads - £12,100
Units - 3,230
Labour hours - 6,300 hours

What is the fixed overhead capacity variance?

57. 

12) The following information is available for a company for Period 8:

Fixed production overheads - £11,480
Units - 3,280
The standard time to produce each unit is 1.5 hours
Actual
Fixed production overheads - £12,100
Units - 3,230
Labour hours - 6,300 hours

What is the fixed overhead efficiency variance?

58. 

1) When investigating variances, which of the following is NOT investigated?

59. 

2) Which of the following is a cause for the price of materials varying?

60. 

3) What will be the effect on variances if lower quality materials are purchased?

61. 

4) Bear Ltd operates a standard costing system
The standard direct material mix to produce 2,000Kg of output is as follows:
Material        Input Qty       Standard Price £ per Kg
A                     1200               2.20
B                     980                 4.80
During August, the actual output of the product was 33,000 Kg
The actual materials issues to production were:
Material        Qty (Kg)
A                     28000
B                     11000

Calculate the material mix variance for each material.

62. 

5) Bear Ltd operates a standard costing system
The standard direct material mix to produce 2,000Kg of output is as follows:
Material        Input Qty       Standard Price £ per Kg
A                     1200               2.20
B                     980                 4.80
During August, the actual output of the product was 33,000 Kg
The actual materials issues to production were:
Material        Qty (Kg)
A                     28000
B                     11000

Calculate the Yield Variance

63. 

6) Haz Ltd produces the Product A & B and the details are as follows:
                                               Product A            Product B
Budgeted sales volume     11000                    14000
Actual Sales Volume          10500                   14500
Profit per unit                      $5                          $6

Calculate the Sales Mix Profit Variance

64. 

7) Which of the following statements are correct?

65. 

8) Which of the following statements are correct?

66. 

9) Which of the following is correct when calculating Planning sales volume variance?

67. 

1) Which of the following are an objective of a corporate organisation?

68. 

2) Which two of the following are steps of the Planning/Control Cycle?

1. Identify Objectives
2. Respond to divergences
3. Motivate employees
4. Compel planning

69. 

3) Which one of the following is a system objective?

70. 

4) Setting budgets that have very high targets/variables can cause which of the following problems?

71. 

Which of the following is a disadvantage of Participative budgeting?

72. 

How is an incremental budget approached?

73. 

Which of the following is an advantage to zero based budgeting?

74. 

Which of the following are the principles of activity based budgeting?
1 Control activities driving costs
2 Removes non-value added elements
3 Responsibility Management
4 Focus on drivers

75. 

Select one advantage and one disadvantage of rolling budgets.

76. 

When a company changes its method of budgeting, which of the following is/are a result of same:

77. 

Total Cost             Level of Activity
13000                    10000
10,500                   5000
What are the variable and fixed costs using the high low method?

78. 

No of pairs of data = 4
(000’s)
∑X = 10.4
∑Y = 180
∑XY= 459.08
∑X2 = 78.2
What is the variable and fixed costs?

79. 

Which of the following correlation coefficient results suggest no relationship?

80. 

For seasonal variances within a company, when using the additive model, would the company:

81. 

For seasonal variances within a company, when using the multiplicative model, would the company:

82. 

Calculate the expected value of the following
Probability            Profit
30%                        (4000)
30%                        4000
40%                        5000

83. 

Which of the following is an advantage of Sensitivity Analysis?

84. 

What is the purpose of a payoff table?

85. 

Which of the following is the definition of minimax regret?

86. 

Which of the following is/are correct?

(a) Cost of conformance = cost of prevention + cost of internal failure
(b) Cost of conformance = cost of internal failure + cost of external failure
(c) Cost of non-conformance = cost of internal failure + cost of external failure
(d) Cost of conformance = cost of appraisal + cost of prevention
(e) Cost of non-conformance = cost of prevention + cost of appraisal
(f) Cost of non-conformance = cost of appraisal + cost of external failure

87. 

The cost of inspecting a product for quality is a value-added cost.

88. 

Proponents of synchronous manufacturing are also supporters of JIT.

89. 

_______ is aimed at preventing the manufacture of defective items.

90. 

Which of the following is not a feature of JIT?

91. 

Which of the following is an example of an environmental external failure cost?

92. 

Choose the correct words from those highlighted.
Traditional costing systems tend to allocate too great/too small a proportion of overheads to high volume products and too great/too small a proportion of overheads to low volume products.

93. 

ABC recognises the complexity of modern manufacturing by the use of multiple cost pools.

94. 

The use of direct labour hours or direct machine hours to trace costs to products occurs with the use of absorption costing but not with the use of ABC

95. 

ABC is not a system that is suitable for use by service organisations.

96. 

Activity based management is a system of management that uses activity based cost information to achieve which of the following?

97. 

Marginal costing and absorption costing are different techniques for assessing profit in a period. If there are changes in inventory during a period, marginal costing and absorption costing give different results for profit obtained.
Which of the following statements are true?
1. If inventory levels increase, marginal costing will report the higher profit.
2. If inventory levels decrease, marginal costing will report the lower profit.
3. If inventory levels decrease, marginal costing will report the higher profit.
4. If the opening and closing inventory volumes are the same, marginal costing and absorption costing will give the same profit figure.

98. 

Which of the following are arguments in favour of marginal costing?

99. 

When opening inventories were 8,500 litres and closing inventories were 6,750 litres, a firm had a profit of $62,100 using marginal costing.
Assuming that the fixed overhead absorption rate was $3 per litre, what would be the profit using absorption costing?

100. 

When sales fluctuate but production is constant, absorption costing smoothes out fluctuations in profit.

101. 

HMF Co produces a single product. The budgeted fixed production overheads for the period are $500,000. The budgeted output for the period is 2,500 units. Opening stock at the start of the period consisted of 900 units and closing stock at the end of the period consisted of 300 units. If absorption costing principles were applied, the profit for the period compared to the marginal costing profit would be:

102. 

CH Ltd operates a throughput accounting system. Product B sells for £27.99, has a material cost of £7.52 and a conversion cost of £1.91. The product spends 27 minutes on the bottleneck resource. What is the return per factory hour for product B?

103. 

Throughput accounting policy is to hold zero inventories throughout all operations.

104. 

When there is just one limiting factor, the product with the ________ contribution earning ability per unit of limiting factor should be produced first.

105. 

Which of the following is not an example of a limiting factor?

106. 

Marginal costing ideas are applied in limiting factor analysis.

107. 

Put the following in the correct order of approach to adopt when dealing with limiting factor analysis and limited freedom of action.

a. Allocate resource according to ranking
b. Rank the products
c. Take into account minimum production requirements

108. 

Which type of cost is Incremental Cost?

109. 

Which type of cost is Sunk Cost?

110. 

Which type of cost is Commited Cost?

111. 

An attributable fixed cost is never a relevant cost.

112. 

The total relevant cost of a scarce resource is equal to the sum of the variable cost of the scarce resource and:

113. 

Which of the following is not an assumption typically made in relevant costing?

114. 

C/S ratio = P/V ratio x 100.

115. 

Which of the following is not a major assumption of breakeven analysis?

116. 

When choosing between two possible sales mix options, the mix with the ______ level of sales to break even should be selected.

117. 

Breakeven point = Contribution per Unit/Total fixed costs

118. 

An organisation that sells a number of products in fixed proportions wishes to earn a profit of $P. Its fixed costs are $F. The revenue per mix of products is $R, the contribution per mix $C. What revenue must it achieve to earn profit of $P?

119. 

Fixed costs should never be taken into account in an accept/reject decision.

120. 

What are the relevant costs in a make or buy decision?

121. 

An organisation produces four products for which there is unlimited demand. Production capacity is limited. The organisation should concentrate on producing the product with the ________ C/S ratio.

122. 

Joint cost allocations are essential for the purposes of determining relative product profitability.

123. 

When deciding, purely on financial grounds, whether or not to process a joint product further, the information required is:

(i) The value of the joint process costs
(ii) The method of apportioning the joint costs between the joint products
(iii) The sales value of the joint product at the separation point
(iv) The final sales value of the joint product
(v) The further processing cost of the joint product

Which of the above statements are correct?

124. 

___________ should be included when formulating linear programming solutions to ensure that the answer makes sense in operational terms.

125. 

An/A ___________ is an equation taking the form 'greater than or equal to' or 'less than or equal to'.

126. 

An/A ____________ is a quantified statement of the aim of a resource allocation decision.

127. 

A feasible polygon/area enclosed on all sides is known as a feasible polygon/area.

128. 

When dealing with a problem in which there is a requirement to minimise costs, we look for a total cost line touching the feasible area at a tangent _________ the origin as possible.

129. 

The shadow price of a scarce resource is not the same as its dual price.

130. 

In what circumstances does slack arise?

131. 

The simplex method can be used for problems with __________ decision variables.

132. 

A slack variable represents the amount of constraining resource that is used.

133. 

What is the general form of an objective function to maximise contribution (C) for a problem with two decision variables (x and y, with coefficients n and m) and four slack variables (S1 to S4)?

134. 

In an optimal simplex tableau, the figure in the row for decision variable x (product X) and column for slack variable S1 (resource A) is –1.35. What does this indicate?

135. 

If a resource constraint has a worth of 356.92 in a spreadsheet package solution to a linear programming problem, what does this indicate?

136. 

It is assumed when using the simplex method of linear programming that there is interdependence between the demand for the different products/services.

137. 

In the equation Y = a + bX, which is the dependent variable?

138. 

Between sales of sun glasses and sales of cold drinks, one would expect (assuming spending money to be unlimited):

139. 

The coefficient of determination is the square of the Pearsonian coefficient of correlation.

140. 

The coefficient of determination can never quite equal 1.

141. 

If the coefficient of determination is high, this proves that variations in one variable cause variations in the other.

142. 

What are the four components of a time series?

143. 

The multiplicative model expresses a time series as TS = T + SV + R.

144. 

A time series for weeks 1 to 12 has been analysed into a trend and seasonal variations, using the additive model. The trend value is 84 + 0.7w, where w is the week number. The actual value for week 9 is 88.7. What is the seasonal variation for week 9?

145. 

The further into the future the forecast is for, the more reliable it is likely to be.

146. 

Which of the following is not an objective of a system of budgetary planning and control?

147. 

Sales is always the principal budget factor and so it is always the first budget to be prepared.

148. 

What is the controlability principle?

149. 

Feedforward control is based on comparing original targets or actual results with a forecast of future results.

150. 

What is goal congruence (in terms of organisational control systems)?

151. 

For each organisation, there is an ideal solution to the conflicts caused by the operation of a budgetary control system and it is the responsibility of the management accountant to find that solution.

152. 

Which one of the following statements is true?

153. 

An attainable standard is based on perfect operating conditions.

154. 

State Ritzer's four dimensions of McDonaldization.

155. 

Variance control reports should be produced either promptly or accurately.

156. 

Standards should be amended every time there is a change in price or efficiency.

157. 

An adverse variance occurs when actual results are the same as expected results

158. 

Choose the appropriate words from those highlighted.

If material price variances are extracted at the time of receipt/as the material is used, they will be brought to the attention of managers earlier than if they are extracted at the time of receipt/as the material is used.

And if variances are extracted at the time of receipt/as material is used, all inventories will be valued at standard price/actual price, which is administratively easier.

159. 

What is variable overhead total variance?

160. 

What is variable overhead expenditure variance ?

161. 

What is variable overhead efficiency variance?

162. 

Which of the following statements about the fixed production overhead volume variance is true?

163. 

Sales volume profit variance = (actual sales volume – budgeted sales volume) x __________

164. 

Which of the following is not a suitable basis for valuing the sales volume variance?

165. 

HMF plc uses standard absorption costing. In June, the following information was recorded.
                                                           Budget                  Actual
Output and sales (units)              17,400                   16,400
Selling price per unit                    £25                         £30
Variable cost per unit                   £15                          £15
Total fixed overheads                   £42,500                 £45,800

The sales price variance for June was:

166. 

Which of the following statements about the materials mix variance is true?

167. 

Materials ___________ variance = materials mix variance + materials ________ variance.

168. 

The labour mix variance is sometimes known as the team mix variance and the labour yield variance is sometimes known as the team yield variance.

169. 

The material cost for an actual production level of 510 units was £32,130. There was a material price variance of £1,020 (A) and the standard price per kg was £6.10. How many kg of material were used?

170. 

In an operational and planning approach to variance analysis, which standards are used to calculate the operational variances?

171. 

Which of the following is not a reason why actual and standard performance might differ?

172. 

Choose the correct words from those highlighted.

A cusum/cumus chart plots individual/the cumulative sum of variances over a period of time/on a one-off basis.

173. 

The following variances were reported for period 1.

Direct labour rate £2,800 adverse
Direct labour efficiency £1,350 favourable

Which of the following statements are consistent with these variances?

174. 

If ideal standards are used, reported efficiency variances will tend to be favourable.

175. 

The joint variance based on the excess labour rate over the standard rate and the excess number of hours worked over standard is the responsibility of the production manager.

176. 

A particular decision maker is concerned with what will be the most likely outcome of a decision. They would be described as:

177. 

A probability can be expressed as any value from –1 to +1.

178. 

Bind Co. uses the activity-based costing approach for cost allocation and product costing purposes. Printing, cutting binding functions make up the manufacturing process. 

Machinery and equipment are arranged in operating cells that produce a complete product starting with raw materials. 

Which of the following are charasteristics of Bind's activity-based-costing approach?

179. 

XY manufactures and sells three products: D, E and F. Budgeted costs for production set-ups for the next year are £680,000.

The following information is given on budgeted plans for each product.

                                      Product D            Product E              Product F
Production units             12,000                   15000                       4000
Batch size                                 20                          30                             10
Number of set-ups
per batch                                     1                            4                               2

To the nearest £, what will be the set-up cost for Product E using activity based costing?

180. 

A product is manufactured by mixing two materials. The standard material cost per unit of the product is as follows:

Material A - 36 litres at £20 per litre, total of £720
Material B - 24 litres at £15 per litre, total of £360

In April, the actual mix used was 2460 litres of A and 2040 litres of B. The actual output was 90 units.

What was the total material yield variance for April?

181. 

A product is manufactured by mixing two materials. The standard material cost per unit of the is as follows:

Material A - 25 litres at £4, Total = £100
Material B - 75 litres at £10, Total = £750

In January, the actual mix was 3,600 litres of A and 14,400 litres of B. The actual output was 200 units. 

What was the favourable material mix variance for Material A in January?

182. 

The following information pertains to Zod Co.'s current-year manufacturing operations:

Standard direct labour hours per unit - 2
Actual direcct labour hours - 10,500
Number of units producing - 5000
Standard variable overhead per standard direct labour hour - £3
Actual variable overhead - £28000

What was Zod's current-year unfavourable overhead efficiency variance?

183. 

Which two of the following could cause an adverse material usage variance?

184. 

2) Using the following information, what is the cost per driver of Inspections?
Total Overheads - £250,000
Inspection costs - 25%
Client Meeting costs - 75%
No. of Inspections - 40
No. of Clients - 70

Leave A Reply