GB Limited operates a standard costing system. During the month 18,500 labour hours were worked at a standard cost of $6 per hour. The labour efficiency variance was $8,700 favourable.
How many standard hours were produced?
The year-to-date results at the end of month 9 included sales revenue of $3,600,000 and variable costs of $2,100,000.
During month 10, sales revenue was $450,000 and variable costs were $270,000.
What year-to-date contribution to sales ratio (C/S ratio) would be reported at the end of month 10?
A company is considering investing $57,000 in a machine that will last for five years, after which time it will have no value. The machine will generate additional revenue of $190,000 each year. Annual running costs, including depreciation of $11,400 will amount to $168,400.
Assuming that all cash flows occur evenly, the payback period of the investment in the machine is closest to:
Overtime worked as a result of a rush order at the customers request should be classified as a:
A company that uses standard costing wishes to reconcile the difference between the profit for a period calculated using absorption costing with that calculated using marginal costing.
Which TWO of the following will NOT help with this reconciliation? (Choose two.)
Refer to the exhibit.
Xpert Ltd uses a standard costing system and therefore values all inventory at standard cost. During period 7, the price paid for material 'Z' was £2 per kg more than the standard price.
The following information for material 'Z' relates to period 7:
What was the material price variance for 'Z' in period 7?
Refer to the Exhibit.
Zepher Ltd. manufactures three products, which require the same type of machine. The following fixed cost and profit per unit is available:
In a period in which machine hours are in short supply, which of the following options is the rank order of production?
Answer is:
An organisation produces and sells a single product. The organisation’s management accountant has reported the following information for the most recent period.
Which TWO of the following statements are valid? (Choose two.)
A company has spent $5,000 on a report into the viability of using a subcontractor. The report highlighted the following:
A machine purchased six years ago for $30,000 would become surplus to requirements. It has a written-down value of $10,000 but would be resold for $12,000.
A machine operator would be made redundant and would receive a redundancy payment of $40,000.
The administration of the subcontractor arrangement would cost the company $25,000 each year.
Which THREE of the following are relevant for the decision? (Choose three.)
TESTED 22 Feb 2025
