BA2 Practice Questions
Fundamentals of management accounting
Last Update 23 hours ago
Total Questions : 392
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In the process account, the accounting treatment of the value of the abnormal gain is:
Apex Plc has budgeted to sell 8,000 units of A in the year. Opening inventory of A is estimated at 1,000 units and the company plans to reduce inventory levels of all products by 15%.
What will be the production budget (in units) for the year?
Refer to the exhibit.
The budget for ORG for the month of September contained the following data:
During the month the actual number of units produced was 1,550. The management accounts showed a direct labour rate variance of $200 adverse and direct labour efficiency variance of $150 adverse.
The actual direct labour hours in the month was:
GB Limited operates a standard costing system. During the month 18,500 labour hours were worked at a standard cost of $6 per hour. The labour efficiency variance was $8,700 favourable.
How many standard hours were produced?
Refer to the exhibit.
A company is considering purchasing a machine that will have a useful life of three years after which time it will be sold. Relevant cash flows relating to the purchase and operation of the machine are as follows.
The annual cost of capital is 14%.
The net present value of the investment in the machine is, to the nearest whole $:
The net present value (NPV) of an investment is as follows.
NPV at 14% = $6,320
NPV at 18% = ($4,600) negative
The internal rate of return (IRR) of the investment is closest to
The wages of a machine operator who is paid a guaranteed minimum wage plus a bonus for each unit produced would be described as
A.
Refer to the Exhibit.
A company operates a batch costing system.
Production overhead costs are absorbed into the cost of batches using a direct labour hour rate. Other overhead costs are absorbed at a rate of 20% of total production cost. The company adds a mark-up of 10% to total cost in order to derive its selling prices.
Budgeted production overheads for the period are $44,000 and the budgeted level of activity is 8,800 direct labour hours.
The following data are available for batch number 309:
The required selling price per unit (to two decimal places) is:
Each unit of product GM requires 4 labour hours to be produced. 25% of the units will be completed during overtime hours.
Sales of 24,000 units are planned and finished goods inventory is budgeted to rise by 2,000 units.
If the wage rate is £6 per hour and the overtime premium is 50%, what is the budgeted labour cost?
Refer to the Exhibit.
PJ Ltd has forecast that the relationship between total overheads and machine hours will be as follows:
If the budget is to be based on 4,000 machine hours, the variable overhead absorption rate will be:
*per machine hour.
Give your answer to 2 decimal places.
