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Question 12

Refer to the exhibit.

A company issued its production budget based on an anticipated output of 800 units. Actual output was 1000 units. The details of the costs are shown below:

The budget expenditure variance was:

Options:

A.

£5,000 adverse

B.

£3,000 adverse

C.

£1,000 favourable

D.

£5,000 favourable

Question 13

Refer to the exhibit.

A company has the following budget information for next year:

The budgeted profit for the year is

Options:

A.

$85,400

B.

$81,200

C.

$72,400

D.

$76,600

Question 14

Refer to the exhibit.

A proposal to purchase a new packing machine contains the following estimates.

In addition it is estimated that a supervisor who is currently paid a salary of $30,000 will spend 5% of their time overseeing the operation of this machine.

The cost of capital is 16%.

The net present value (NPV) for the investment in the machine is closest to

Options:

A.

$10,876

B.

$50,181

C.

$51,627

D.

$53,550

Question 15

The selling price of product 'P' is £20 per unit. Variable costs are £6 per unit and total fixed costs are £140,000 each year.

To earn a profit of £70,000 each year, the annual sales will need to be, to the nearest 1,000 units,

Options:

Page: 3 / 14
Exam Code: BA2
Exam Name: Fundamentals of management accounting
Last Update: Dec 2, 2024
Questions: 392
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