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Extra info for CIMA - C01 Fundamentals of Management Accounting: Revision Kit

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If expenditures were as expected for variable and fixed overheads, the total underabsorbed overhead for the period would be: A B C D 8 $0 $2,500 $4,000 $6,500 The production overhead of department D is absorbed using a machine hour rate. Budgeted production overheads for the department were $280,000 and the actual machine hours were 70,000. Production overheads were under absorbed by $9,400. If actual production overheads were $295,000 what was the overhead absorption rate per machine hour (to the nearest cent)?

2 How many units must be sold if W Co wishes to earn a profit of $6,000 for one period? A B C D 3 What is W Co's margin of safety for the budget period if fixed costs prove to be 20% higher than budgeted? A B C D 4 34 29% 40% 50% 66%% If the selling price and variable cost increase by 20% and 12% respectively by how much must sales volume change compared with the original budgeted level in order to achieve the original budgeted profit for the period? 4% increase B Co manufactures and sells a single product, with the following estimated costs for next year.

40 per unit Budgeted production in April was 850 units. 60 (A) $280 (A) Rainbow Co has prepared the following standard cost information for one unit of product Orange. 00 Actual results for the period were recorded as follows: Production Materials – 9,720 kg Labour – 15,800 hours Fixed overheads 4,820 units $121,500 $66,360 $41,700 All of the materials were purchased and used during the period. The direct material price and usage variances are: Favourable 5 Material price $ (to the nearest $) Material usage $ (to the nearest $) (a) Adverse Sunshine Co has a standard ingredients cost of $14 for a single unit of production.

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