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Qn1-One unit of a product is expected to use two kg of material at an expected cost of $ 2.40 per kg and take six months of direct labour paid at $ 1 per hour.Fixed overhead are absorbed at $ 2 per labour hour .What is the standard cost per unit under absorption costing?
A.$4.90
B.$7.80
C.$5.10
D.$5.40
I am just confused with the answer whether I have done correctly.
2*2.4= 4.8
+ 1
+ 2 Answer D = $7.8 Is it correct?
Qn2-Which of the following statement about the master budget is correct?
A.The master budget cannot be amended once prepared.
B.The master budget is always prepared first before the operating budget.
C.Master budget is usually the last stage after operating budgets are agreed.
D.It is the responsibility of the operational manager to agree the master budget.
Answer-AQn-3 Which of the following are features of cost accounting but not financial accounts?
A.Cost variances
B.Periodic stocktaking
C.Control accounts
D.Overhead absorption
Answer A and DSir I am Just confused whether the answers I have done are correct or not.
Thanks for the help in advance.Why on earth are you attempting questions for which you do not have an answer? It really is wasting your time – you should be using a Revision Kit from one of the ACCA approved publishers (they have answers in them to all of the questions!!).
1. You cannot have possibly typed the question correctly – you have written that it takes 6 months of labour!
2. The answer is not A, it is C (you should watch my free lectures on this for an explanation)
3. OK – A and D (but you cannot select two of the choices in the real exam!)
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