BA2 Exam Question 61
Refer to the exhibit.
A company manufactures a single product, and relevant data is as follows:
Note. Overheads are assumed to be related to direct labor hours.
The actual results for the period were as follows:
What is the variable overhead efficiency variance?
A company manufactures a single product, and relevant data is as follows:
Note. Overheads are assumed to be related to direct labor hours.
The actual results for the period were as follows:
What is the variable overhead efficiency variance?
BA2 Exam Question 62
A company's management accountant wishes to calculate the present value of the cost of renting a delivery vehicle. There will be five annual rental payments of $5,000, the first of which is due immediately. The company's discount rate is 12%.
Which TWO of the following are valid ways to calculate the present value of the rental payments?
Which TWO of the following are valid ways to calculate the present value of the rental payments?
BA2 Exam Question 63
Refer to the exhibit.
The Solo Company makes only one type of product. The budgeted profit statement for the next year, when output is budgeted to be 50,000 units is:
The margin of safety is:
The Solo Company makes only one type of product. The budgeted profit statement for the next year, when output is budgeted to be 50,000 units is:
The margin of safety is:
BA2 Exam Question 64
Eton Ltd. operates a manufacturing process that produces product A.
Information for this process last month is as follows:
(a) Opening work in progress - 2,500 kg valued at £2,000 for direct material and £1,500 for labour and overheads.
(b) Materials input - 25,000 kg at £2.10 per kg.
(c) Labour - £10,000
(d) Overheads - £5,000
(e) Output during the month - 20,000 kg
(f) There were 7,500 units of closing work in progress which was complete as to materials and 30% complete as to conversion.
(g) Normal loss for the month was 3% of input and all losses have a scrap value of £1 per kg.
What was the value of closing work in progress at the end of the month (to the nearest £)?
Information for this process last month is as follows:
(a) Opening work in progress - 2,500 kg valued at £2,000 for direct material and £1,500 for labour and overheads.
(b) Materials input - 25,000 kg at £2.10 per kg.
(c) Labour - £10,000
(d) Overheads - £5,000
(e) Output during the month - 20,000 kg
(f) There were 7,500 units of closing work in progress which was complete as to materials and 30% complete as to conversion.
(g) Normal loss for the month was 3% of input and all losses have a scrap value of £1 per kg.
What was the value of closing work in progress at the end of the month (to the nearest £)?
BA2 Exam Question 65
A company makes and sells a range of products. The standard details per unit for one of these product, are as follows.
To meet sales demand, the company must obtain 2,000 units of product X next month. There is sufficient labour capacity to produce 1.500 of these units in-house during normal time. However, any production above this level would require overtime working which would be paid at a premium of 50%.
The company can buy as many units of product X as it wishes next month from an external supplier at a price of S120 per unit.
What is the total financial benefit to the company of purchasing the appropriate number of units from the external supplier rather than producing them in-house?
To meet sales demand, the company must obtain 2,000 units of product X next month. There is sufficient labour capacity to produce 1.500 of these units in-house during normal time. However, any production above this level would require overtime working which would be paid at a premium of 50%.
The company can buy as many units of product X as it wishes next month from an external supplier at a price of S120 per unit.
What is the total financial benefit to the company of purchasing the appropriate number of units from the external supplier rather than producing them in-house?