Thursday, 29 October 2015

Cima C01 Exam Question No 30

Question No 30:

P operates a standard marginal costing system. The following budgeted and standard cost information is available:

Budgeted production and sales                               10,000 units
Variable production overheads – 5 hours x $4 $    20 per unit


Actual results for the period were as follows:


Production and sales                                                11,500 units
Variable production overheads – 52,000 hours      $195,000


The variable production overhead expenditure variance is

A.
$35,000 adverse
B.
$13,000 adverse
C.
$13,000 favourable
D.
$35,000 favourable

Answer: C

Tuesday, 20 October 2015

Cima C01 Exam Question No 29

Question No 29:

G repairs electronic calculators. The wages budget for the last period was based on a standard repair time of 24 minutes per calculator and a standard wage rate of $10.60 per hour.
Following the end of the budget period, it was reported that:

Number of repairs                         31,000
Labour rate variance                     $3,100 (A)
Labour efficiency variance             Nil


Based on the above information, the actual wage rate during the period was:
A. $10.35 per hour
B. $10.60 per hour
C. $10.85 per hour
D. $11.10 per hour

Answer: A


Thursday, 15 October 2015

Cima C01 Exam Question No 28

Question No 28:

Which ONE of the following factors could explain a favourable direct material usage variance?

A.
More staff were recruited to inspect for quality, resulting in a higher rejection rate.
B.
When estimating the standard product cost, usage of material had been set using ideal standards.
C.
The company had reduced training of production workers as part of a cost reduction exercise.
D.
The material price variance was adverse.

Answer: D

Thursday, 8 October 2015

Cima C01 Exam Question No 27

Question No 27:

X operates a standard marginal costing system. The following budgeted and standard cost information is available:

  • Budgeted production and sales          10,000 units
  • Direct material cost –                         3 kg x $10 $30 per unit
Actual results for the period were as follows:
  • Production and sales                           11,500 units
  • Direct material –                                 36,000 kg $342,000
The direct material price variance is

A.
$18,000 adverse
B.
$3,000 adverse
C.
$3,000 favourable
D.
$18,000 favourable

Answer: D

Thursday, 1 October 2015

Cima C01 Exam Question No 26

Question No 26:

A standard cost is?

A.
The planned unit cost of a product, component or service in a period.
B.
The budgeted cost ascribed to the level of activity achieved in a budget centre in a control period.
C.
The budgeted production cost ascribed to the level of activity in a budget period.
D.
The budgeted non-production cost for a product, component or service in a period.

Answer: A