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Fundamentals of management accounting

Last Update Dec 21, 2024
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Fundamentals of management accounting Questions and Answers

Questions 1

The standard variable cost of product A is $4 per unit and the standard selling price is $6.80 per unit.

During the latest period 1,200 units of product A were produced and sold, compared with a budget of 1,300 units.

The actual variable cost incurred was $4.90 per unit and the actual selling price was $6.50 per unit.

The sales volume contribution variance for the period was

Options:

A.

$160 adverse

B.

$280 adverse

C.

$390 adverse

D.

$680 adverse

Questions 2

Refer to the exhibit.

The following standard cost information relates to the production department of Brace Engineering Ltd.

The actual data for the month of March was as follows:

What is the direct labour rate variance (to the nearest whole number)?

Options:

A.

£2,500 favourable

B.

£2,500 adverse

C.

£2,656 favourable

D.

£2,656 adverse

Questions 3

Refer to the exhibit.

Which is the correct journal entry required to record an adverse labour rate variance in an integrated accounting system?

The correct journal entry required to record an adverse labour rate variance in an integrated accounting system is:

Options:

A.

A

B.

B

C.

C

D.

D

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