BA2 - Fundamentals of Management Accounting Exam Questions PDF download

QUESTION: 51 Exam Topic: 1, Exam Pool A

CORRECT TEXT

A company operates a full cost system of pricing. Production overheads are absorbed using a pre-determined absorption rate of £3.50 per machine hour. The direct production cost of product A is £15 per unit and it utilises 6 machine hours per unit. The mark-up for non-production costs is 10% of total production cost. The company wants to make a 25% return on sales revenue for all products.

The required selling price for Product A, to two decimal places, is:

£52.85

Answer(s): A

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QUESTION: 52 Exam Topic: 1, Exam Pool A

CORRECT TEXT

A product sells for £10 per unit and has an annual break-even volume of 50,000 units. The annual fixed costs are £100,000.

The variable cost per unit is:

Give your answer to 2 decimal places.

£8.03

Answer(s): A

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QUESTION: 53 Exam Topic: 1, Exam Pool A

Refer to the exhibit.

The wages analysis for the welding department of a manufacturing company is given below:

What is the direct labor cost for the welding department?

$40,550
$36,890
$30,250
$38,490

Answer(s): B

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QUESTION: 54 Exam Topic: 1, Exam Pool A

Refer to the Exhibit.

A company operates an absorption costing system. The management accounts show that fixed production overheads were over-absorbed in the period.

Which FOUR combinations could possibly have resulted in this situation?