CIMA BA2 - Fundamentals of Management Accounting CIMAPRA17-BA2-1 Dumps in PDF

Free CIMA CIMAPRA17-BA2-1 Real Questions (page: 12)

CORRECT TEXT

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?

  1. 7850 units

Answer(s): A



CORRECT TEXT

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.

  1. 4.46

Answer(s): A



Which of the following industries would not use process costing?

  1. Brewing
  2. House-building
  3. Chemical
  4. Food processing

Answer(s): B



FL uses an absorption costing system. The overhead absorption rate for production overheads is $8.60 per direct labour hour.

Budgeted production overhead costs for the year were $473,000 and actual costs incurred were $468,000. 56,000 labour hours were used.

Which ONE of the following statements is correct?

  1. Overheads were under-absorbed by $5,000
  2. Overheads were over-absorbed by $8,600
  3. Overheads were under-absorbed by $8,600
  4. Overheads were over-absorbed by $13,600

Answer(s): D



A company operates an absorption costing system. Overheads are absorbed using a pre- determined absorption rate using labour hours.

Actual labour hours were 10% below budget for the period and overheads incurred were 10% above budget for the period. This would result in:

  1. An over-absorption of overheads for the period
  2. An under-absorption of overheads for the period
  3. Neither an over- or under-absorption of overheads for the period
  4. Impossible to tell from the information available

Answer(s): B



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