CIMA BA2 - Fundamentals of management accounting

Refer to the exhibit.

The budgetary control report for the latest period shows the following. Variances in brackets are adverse.

The sales volume contribution variance for the period was

During Period 8, 120kgs of material 'X' was purchased for a total cost of £1,920. This resulted in a materials price variance of £240 adverse.

What was the standard price per kg of Material 'X'?

A company uses an integrated accounting system.

The accounting entries for an issue of indirect materials to production would be:

Which of the following would have an impact on the cash budget?

(a) Change in payables terms

(b) Change in the rate of depreciation

(c) Change in the percentage discount allowed

(d) Change of inventory holding policy

LC produces a household detergent in a single process. Information for this process for last month is as follows:

(a) Materials input - 11,000 Litres at £2.00 per litre.

(b) Conversion costs - £23,000

(c) Output during the month - 8,000 litres.

(d) There were 2,000 units of closing work in progress which was complete as to materials and 35% complete as to conversion.

(e) Normal loss for the month was 5% of input and all losses have a scrap value of 50p per litre.

(f) There was no opening work in progress.

What was the value of the abnormal loss/gain during the month (to the nearest £)?

Refer to the exhibit.

ZAP publishes a monthly magazine aimed at the teenage market. It has drawn up a budget for next year as follows:

What selling price would be required for ZAP to break even?

A manufacturing company has four production departments. Overheads have been apportioned between them as follows:

It takes each department 4 hours, 4 hours, 2 hours and 3 hours respectively to produce the company's only product. The company recovers costs on the basis of labour hours. They plan to produce 6,000 units

What will the overhead absorption rate per unit be in £'s?

Select the correct answer from the choices below

Which of these descriptions most accurately describes a cost centre?

Budgets are produced:

(a) For planning purposes

(b) For control purposes

(c) To be published with the annual accounts

(d) To comply with international accounting standards

Refer to the exhibit.

The prime cost of product 'Z' is as follows:

Overheads are absorbed at £4.00 per labor hour in Department 1 and £6.00 per labor hour in Department 2.

The production cost of Product Z, to the nearest £, will be:

Give your answer to 2 decimal places.