The materials price variance will be adverse when:
Answer(s): B
CORRECT TEXT CVP Limited manufactures a single product with a selling price of $25.60. Fixed costs are $122,880 per month and the product has a profit/volume ratio of 40%.In a month when actual sales were $358,400, CVP's margin of safety in units was
Answer(s): A
A company operates an absorption costing system. Overheads are absorbed using a pre- determined absorption rate using labour hours. In the period actual labour hours were 10,600, 400 hours below budget. Actual overheads for the period were £234,680 and there was an under-absorption of overheads of £1,480.What was the budgeted level of overheads?
The net present value (NPV) of an investment is as follows.NPV at 14% = $6,320NPV at 18% = ($4,600) negativeThe internal rate of return (IRR) of the investment is closest to
Answer(s): C
Refer to the Exhibit.AM Ltd. makes and sells a single product for which the standard cost information is as follows:Budgeted production for the period is 30000 units. The actual results for the period were as follows:What is the variable overhead expenditure variance?
Answer(s): D
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