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I had purchase Practice exam from ACCA. But that are no answer .
1. Are Scatter diagrams are graphs show equations ? * My answer : No
2. A company uses standard marginal costing. Last month when all sales were at the standard price. the standard contribution from actual sales was $50,000 and the following variances arose:
Total variable cost variance $3500 adv
Total fixed cost variance 1,000 Fav
Sales volume contribution 2,000 Fav* My answer: 50,000 – 3500 + 2,000 = 48500 (Should i add 1,000 ? as i kw that are only fixed OHD volume do not include , no sure if is total fixed cost)
3.Which of the following would provide the best basic for measuring the performance of a manager of an investment centre?
– Controllable opearating profit – Contribution – Traceable divisional profit – Divisional net profit4.A company use standard costing. This year the standard labour cost of a product is $180.60 per unit. The standard labour rate is $86 per hour. Last mth 2200 hours were worked and there was an adverse labour effiency variane of $8600 . The variance was caused new working pratices introduced by the company. The full effect of the new working practices is to be incorporated into the new standard cost of the product for next year. In addition, a labour rate increase of 10% is to be built into the new standard cost.
-$207.26- $198.66 – $189.20 – $208.12* my answer : 180.60 X 110% = 198.66 ? But look like too simple for my answer.
5.A company manufactures and sells a single product. Next year the budgeted total fixed production costs are $300,000, the budgeted sales are 100,000 units and the budgeted production is 120,000 units. The budgeted profit for next year using absorption costing principles is $80,000.
What is the budgeted profit for next year using marginal costing principles?
$140,000
$30,000
$130,000
$20,000*my answer : Don’t know… Only have one total’fixed’production cost ? how to calculate ?
6.A company rents its factory for $90,000 per annum. This year 60,000 units have been manufactured in the factory utilising 75% of its total capacity. Next year the plan is to manufacture 100,000 units by using the existing factory at full capacity and by renting just sufficient additional capacity. The additional capacity is available at the same rental cost per square metre as the existing factory.
What is the budgeted total rental cost for next year?
My answer: 60,000 = 90,000
100,000 = ?
= 100*90 / 60 = 150,0007. A company uses absorption costing with a predetermined hourly fixed overhead absorption rate. The following situations arose last month:
(a)Actual hours worked were less than the budgeted hours used to set the predetermined absorption rate
(b)Actual overhead expenditure exceeded budgeted expenditureWhich of the following statements is correct?
1.Both situations would cause the overheads to be under absorbed
2.Both situations would cause the overheads to be over absorbed
3.Situation 1 would cause the overheads to be over absorbed and situation 2 would cause the overheads to be under absorbed
4.Situation 1 would cause the overheads to be under absorbed and situation 2 would cause the overheads to be over absorbed
*My answer : 38. Flexed budgets for the cost of cleaning in a hotel depend on the number of beds occupied. The following information is available for different levels of occupancy:
Proportion of beds occupied (%) Cleaning costs ($)
73 28,241
85 28,445In June 76% of beds were occupied.
What should the cleaning costs be for June?
(a)$29,402
(b)$25,433
(c)$28,343
(d)$28,292*My answer : 29402(28241/73 * 76) ( but 25433 also possible ? hw to choose which one to follow ? 70 or 83?)
9. A factory consists of two production cost centres (T and V) and one service cost centre (W). The total allocated and apportioned overhead for each centre is as follows:
T ($) 22,000
V ($) 54,000
W ($) 80,000The service cost centre overhead is reapportioned to the production cost centres based on the number of employees. The number of employees in each cost centre is as follows:
T 50
V 30
W 20After the reapportionment of service cost centre overhead what is the total overhead for production cost centre T?
* My answer : 72,000 ( 50/80 * 80,000 = 50,000 + 22,000)
10. Z Co has long-term loan liabilities of $324,000 and shareholders’ funds of $402,000.
What is Z Co’s capital gearing ratio?
(a)44.6%
(b)19.4%
(c)124.1%
(d)55.4%
My answer : Gearing ratio = Liabilities / shareholders fund = 324/402 = 80.60 ? BUt no answer, only have answer of 402/324 = 124% ?I am puzzled that you are asking these questions, because the ACCA does provide answers to their practice exams and you cannot expect me to provide answers to 10 questions!!!!
This forum is for you to ask what problems you have with the answers and then I will try and help – it is not to expect full answers to full questions.
I assume that you have watched my free lectures, and so I will answer the first 6 of your questions.
1. You must have typed the question wrongly, but I think the answer is ‘No’
2. You have not said what the question is asking for. Presumably it was asking for the actual contribution, in which case the fixed cost variance is not relevant.
Also, the sales volume variance is not relevant because you are given the standard contribution from actual sales (not the budget contribution).
So the actual contribution = 50,000 – 3.500 = 46,5003. Controllable operating profit
4. Again, you have not typed what the question was asking for! Presumably it wanted the new standard cost.
The new standard cost needs to take into account of the new working practices. Each unit was supposed to take 180.60/86 = 2.1 hours.
They actually took 8600/86 = 100 hours more than they should have done. So they should have taken only 2,100 hours, which means they were producing 2,100/2.1 = 100 units.
So the new time per unit is 2,200/100 = 2.2 hoursSo the new standard cost = 2.2 hours x (86 x 110%) = 208.12
5 You need to watch my free lectures!!
The only difference ever between the marginal and absorption profits is equal to the change in inventory x the fixed overheads per unit.
You know the change in inventory (an increase of 2,000 units) and you know the fixed overheads per unit (300,000/120,000).6. The capacity of the factory = 60,000/75% = 80,000.
Therefore they need to rent capacity for an extra 20,000 units.
Therefore the cost will be 100000/80000 x $90,000I feel so sorry about it. Is first time for me to purchase this practice test. I had check that are really got answer with it. So guilty…. thanks a lot for your help…
But yes, i had read and study your free lectures, and i had one question regarding the free lectures, at page number 72. Chapter 12.
A company operates a process costing system using the FIFO method of valuation. No losses occur in the process , All materials are input at the commencement of the process. Conversation costs are incurred evenly thought the process.
the following data relate to last period:
Units Degree of completion
Opening WIP 2000 60%
Total number of units completed 14000
Closing work in progress 3,000 30%cost arising :
Materials 51,000
Conversion 1931701. What was the total number of units input during last period?
The answer you given is C – 15000
But i don’t understand how to get this answer?
They completed 14,000 and had 3,000 still as WIP at the end of the period.
That means that they were working on 17,000 in total.
Of the 17,000, 2,000 we already being worked on at the beginning of the period, which means the remaining 15,000 were input during the period.
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