Free CIMA BA2 Practice Exam with Questions & Answers | Set: 4

An overtime premium may be defined as:

Which ONE of the following would be the LEAST effective performance indicator for a distribution manager who is responsible for controlling the cost of the transport fleet?

In the process account, the accounting treatment of the value of the abnormal gain is:

Refer to the exhibit.

The budget for ORG for the month of September contained the following data:

During the month the actual number of units produced was 1,550. The management accounts showed a direct labour rate variance of $200 adverse and direct labour efficiency variance of $150 adverse.

The actual direct labour hours in the month was:

A company operates a full cost system of pricing. Production overheads are absorbed using a pre-determined absorption rate of £3.50 per machine hour. The direct production cost of product A is £15 per unit and it utilises 6 machine hours per unit. The mark-up for non-production costs is 10% of total production cost. The company applies a 25% mark-up on total cost for all products.

The required selling price for Product A, to two decimal places, is:

Refer to the exhibit.

The wages analysis for the welding department of a manufacturing company is given below:

What is the direct labor cost for the welding department?

In the process account, the accounting treatment of the value of the abnormal loss is:

In an integrated cost and financial accounting system, the accounting entries for the payment of net wages to indirect production workers would be:

In order to provide information that is suitable for control purposes, the budget must be:

Refer to the exhibit.

A company budgeted to provide 700 units of service last period for a budgeted variable overhead cost of $29,400. During the period a total of 790 units of service were provided and the variable overhead cost incurred was $29,660.

For effective control of variable overhead cost which two figures should be compared in the budgetary control statement?