[Nguwar@]

A firm uses standard absorption costing. The following variances occurred last period:

$

Sales volume profit 10,100 Adverse

Sales price 4,200 Favourable

Material price 2,300 Favourable

Labour efficiency 500 Adverse

Fixed overhead expenditure 1,800 Adverse

Fixed overhead volume 2,000 Adverse

Fixed overhead capacity 1,500 Favourable

Fixed overhead efficiency 3,500 Adverse

The standard profit from actual sales for the period was $240,000.

What was the actual profit for the period?

*
2 points
A. $232,100
B. $240,200
C. $230,100
D. $242,200

[Nguwar@]

A company manufactures two products, X and Y, from the same direct material. An equal number of each product will be produced this period. Each unit of X requires 2 kg of material and each unit of Y requires 3 kg of material. The company always holds closing inventory of raw material sufficient for 40% of the next period’s production. The budgeted closing raw material inventory for the previous period is 900 kg.

What is the budgeted production of X for the current period?

2 points
A. 225 units
B. 450 units
C. 900 units
D. 1,125 units

[Nguwar@]

Job costing is only applicable to service organisations

[Nguwar@]

A company prices its product by using a mark-up of 80% on variable production cost. Fixed production overhead is absorbed at 50% of variable production cost and the product has a price of $15 per unit.

What is the product’s full production cost per unit?

2 points
A.$4.17
B.$4.50
C.$6.00
D.$12.50

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