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Pearson P1 New Attempt

Page: 6 / 9
Question 24

A completed unit of Product A requires 9 kg of material and 10% of material is wasted in the production process.

Material has a standard cost of $5 per kg.

Product A also requires 4 labour hours at a standard cost of $10 per labour hour and variable overheads at a standard cost of $2 per labour hour

What is the standard variable production cost per unit of Product A?

Options:

A.

$97.50

B.

$93

C.

$98

D.

$50

Question 25

Which of the following statements about total quality management are incorrect? Select ALL that apply.

Options:

A.

The culture of an organisation should be to get things right the first time.

B.

Everyone within an organisation should be involved in improving quality.

C.

All costs relating to quality should be examined, particularly those relating to failure costs.

D.

There is an acceptable quality level that an organisation must try to achieve.

E.

The costs of conformance are more important than the costs of non-conformance.

F.

The organisation should rely on inspection to achieve quality standards.

Question 26

The term ‘budgetary slack’ refers to the:

Options:

A.

Lead time between the preparation of the functional budgets and the approval of the master budget by senior management

B.

Difference between the budgeted output and the actual output

C.

Difference between budgeted capacity utilization and full capacity

D.

Intentional over estimation of costs and/or under estimation of revenue in a budget

Question 27

The budgeted production of product G for the period was 300 units. At the end of the period it was discovered that the standard hourly rate for labour should have been higher than that originally planned. Actual production was 450 units.

The labour rate planning variance would be calculated as:

Options:

A.

The revised standard cost of 450 units compared with the original standard cost of 450 units

B.

The revised standard cost of 300 units compared with the orginal standard cost of 300 units

C.

The revised standard cost of 450 units compared with the original standard cost of 300 units

D.

The revised standard cost of 300 units compared with the original standard cost of 450 units

Page: 6 / 9
Exam Code: P1
Exam Name: Management Accounting
Last Update: Jun 20, 2024
Questions: 260
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