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i really careless sir. i (X) with wrong std cost per hour that why i got wrong answer. hehe 😀 Btw sir, thank you so much. you have opened my eyes 🙂
Sir, i’m so sorry. I have no intention to hurt your feelings. May God bless you sir. Thanks for your help and guidance. I will never forget it. Will you pray for my success sir?
Sir, i cant solve this question. please help me sir.
A business operates a job costing system and has the aim of making a net profit 30% of sales.
The cost estimates for one particular job are as follows:
Direct materials : 80 kg at $5 per kg
Direct labour : 40 hours at $6 per hour
The total overhead are budgeted at $120,000 and are absorbed on the basis of labour hours. The budgeted labour hours are 50,000.What price should be quoted for this job (to the nearest $)?
Hope sir can tell me how to get the correct answer for this question.
Sir, i need your help to check my answer for some question are wrong or right. if i was wrong please correct it for me sir.
Q1. The following statement refer to documents used in the material procurement procedures of XYZ Co. is each of these statements true of false?
– A purchase requisition is prepared in the purchasing department of XYZ Co and then sent to the supplier ( True )
– A goods received note is prepared by the supplier and sent with the material to XYZ Co. ( False )
_________________________________________________________Q2. A company uses absorption costing with a predetermined hourly fixed overhead rate.
The following situation arose last year. Would each of these situations cause overheads to be under absorbed or over absorbed?
– Actual hours worked were less than budgeted hours used to set the predetermined overhead absorption rate (over absorbed)
-Actual overhead expenditure was less than the budgeted expenditure (under absorbed)
_________________________________________________________Q3. Each of these statements about spreadsheets true or false?
-A spreadsheet is the most suitable software for the long term storage of large volumes of data. (false)
– A spreadsheet could be used for preparing flexible budgets for different activity levels. (true)
_________________________________________________________Q4. Last month an organisation’s direct workers were paid $40,000 for normal working. In addition they were paid a total of $12,000 for overtime working. Overtime hours which were required due to a general shortage of labour were paid at time and a half.
What was the total direct labour cost for last month?
12000 x 1/2 = 6000
direct labour cost = 40000 – 6000
= 34000.
_________________________________________________________Q5. The budgeted costs for X Co for June are as follows:
Sales 20,000 units
Materials $120,000
Labour $200,000
Fixed overheads $350,000
Total cost $670,000If the budget is flexed for 30,000 units what will be the budgeted total cost?
My answer : $830,000
_________________________________________________________Q6. Which two of the following about fixed and flexible are true?
i- Comparison of a fixed budget with the actual results is useful for budgetary control purposes.
ii- Flexible budgeting assumes that most costs are semi-variable.
iii- Fixed budget are useful for monitoring fixed costs.
iv- Flexible budgets are prepared using marginal costing techniques.My answer: i and ii.
________________________________________________________Q7. A company operates a job costing system. Job number 1207 requires $80 of direct material and $120 of direct labour. Direct labour is paid at rate of $12 per hour. Direct expenses for the job are $50. Production overheads are absorbed at rate of $40 per direct labour hour and non-production overheads are absorbed at a rate 110% of prime cost.
What is the total cost of the job number 1207?
My answer:
DM = 80
DL = 120
DE = 50
_______
Prime cost = 250
Prod. ovrhead = 400
Non.Production = 275
___________________
Total cost = $925.
_________________________________________________________
Q8. Which of the following about mission statements are true?i-They are stated in a standard format.
ii-They play an important role in the planning process.
iii-They help ensure consistency in decision making.My answer: ii and iii.
_________________________________________________________
Q9. A company manufactures and sells a single product. next year the budgeted total fixed production costs are $480,000. budgeted sales are 24,000 units and budgeted production is 25,000 units. The budgeted profit for next year using absorption costing principles is $57,500What is the budgeted profit for next year using marginal costing principles?
My answer: $38,300.
_________________________________________________________
Q10. Which of the following statements about standard costing are true?i- A standard cost is a predetermined estimated unit cost.
ii- A standard cost can be used as a control device to help improve performance.
iii- A standard cost card shows the unit cost details only of each product.My answer: i and ii.
_________________________________________________________ sir, i have 2 question that i can’t solve. Please help me.1. The following data relate to process for last month:
Opening inventory 200 units (70% complete)
Completed ouput 2450 units
Closing inventory 300 units (40% complete)What were the equivalent units of production last month?
_________________________________________________________
2. A company manufactures and sells a single product. At the end of the manufacturing process all units are inspected and 20% are rejected and scrapped. Next year the budgeted sales are 192,000 units and the inventory of finished units will increase by 2,000 units.What is next year’s budgeted production (in units) which will be subject to inspection?
Sir, for question no 2. i miss to add the information of net profit 30% of sales.
A business operates a job costing system and has the aim of making a net profit 30% of sales.
The cost estimates for one particular job are as follows:
Direct materials : 80kg at $5 per kg
Direct labour : 40hours at $6 per hour
The total overhead are budgeted at $120,000 and are absorbed on the basis of labour hours. The budgeted labour hours are 50,000.What price should be quoted for this job (to the nearest $)?
Hope sir can tell me how to get the correct answer for this question.
im sorry sir. I forgot to wrote on top of the qusrtion that want you to check the answer for me. Btw. thank you for your reply sir.
Here i need your help to check my answer. Please assist me sir.
Question:
Kidling Co uses a std marginal costing system for cost control of its single product.Standard cost card :
Direct material 2.5kg at $12.60 per kg 31.50
Direct labour 2hour at $ 11.20 per hour 22.40
Variable production overhead 8.80
Fixed production overhead are budgeted at $160,200 per month.Actual result:
Production 6200 unit
Direct material 15,240kg purchased and used at a total cost of $195,920
Direct labour 12,590 hours worked
Variable production overhead $52,820Calculate:
1) Direct material price 3896(F)
2) Direct material usage 3276(F)
3) Direct labour efficiency 2261(A)
4) Total variable production overhead 139204(A)
5) Fixed production overhead expenditure 9200(A)Sir, i don’t know how to calculate this question. Please help me sir.
The direct labour rate variance in the month just ended was $1,908 favourable.
What was the total direct labour cost in the month?
Sir, for your information. These question came from myacca web practice test that i purchase last two week. they do not provide any answer for any wrong question. And i also do not knew which question that i wrong and correct. As i told you, this practice test just like we sit for the real CBE exam. we only knew our result pass or fail after we submit the test.
Sir, for this question i already redo, and got $7500. Please correct me if im wrong.
1) A company uses standard marginal costing. Last month the standard contribution on actual sales was $10,000 and the following variances arose:
Total variable costs variance 2,000 Adv
Sales price variance 500 Fav
Sales volume contribution variance 1,000 AdvWhat was the actual contribution for last month?
My answer:
10,000
(2,000)
500
(1,000)
______
7,500_________________________________________________________
Sir, i don’t understand why my friend get $1051 while i got $736. Can you explain which answer is correct.
2) If the overheads are 120,000 for 50,000 hours then they are $2.40 per hour.
You know there are 40 hours of labour.
So all you have to do is add up the costs.
_________________________________________________________Sir, for this question i really need your detail explanation. i cannot understand what is the requirements of the question.
3) T Co usually has a quaterly labour of $2,500,000. Material costs (mainly cooper) were $3,000,000 in January to march. The worldwide cost of copper has increased in the second quarter by 15%. Overheads were $45,000,000 in January to March.
Which TWO of the following variances for April to June are worth investigating as the reason for the variance are unknown?
A- Total direct labour variance of $400 adverse
B- Overhead expenditure variance of $4,000,000 adverse
C- Materials price variance of $450,000 adverse
D- Sales volume variance of $3,000,.000 favourable*Sir, i know i had trouble you a lot. i’m really sorry. i just want to prepare myself before sit for CBE exam. Your help will be so meaningful to me.
No sir. i buy practice test from myacca. they do not provide correct answer after i submit my answer. They just give me mark for my test. Just like sit for real CBE exam. By the way sir, thank you so much. I really appreciate your assist.
Sir, actually i already submit all my answer to myacca web, but they do not provide me schema to check which question i wrong and what is the correct answer. That why i retype all the question and hoping that you can help me to give the correct answers. I’m sorry if my question give a big burden to you. I’m sorry again sir
