CIMA BA2 - Fundamentals of Management Accounting CIMAPRA17-BA2-1 Exam Questions

Refer to the exhibit.

The following standard cost information relates to the production department of Brace Engineering Ltd.

The actual data for the month of March was as follows:

What is the direct labour rate variance (to the nearest whole number)?

Refer to the exhibit.

A company has the following budgeted sales for the next 6 month period:

Cash sales are 20% of the total and receive a cash discount of 5%. The remaining 80% of sales are on credit. 60% of credit customers pay within one month, the remaining 40% pay within two months.

The cash receipts for the month of July will be:

Which of the following is not an advantage of IRR?

A company operates a flexible budget system. A budget for direct material cost is set at 12500 for 2500 kgs of material.

It is budgeted that all materials will be obtained at a 5% discount when total production is in excess of 2700 kgs.

What variance is reported if actual material usage is 3000 kgs and the actual cost is 13500?

When preparing the material purchases budget, the quantity to be purchased equals:

The direct labor rate variance is:

Refer to the exhibit.

X Enterprises runs a private nursing home for the elderly. The company are concerned that bed occupancy rates have been falling over the past 2 years with a consequential effect on profit. They have drawn up a budget for next year as follows:

The nursing home currently charges $90 per patient day.

The nursing home operates at 7,500 patient days per year. In an effort to increase occupancy rates the company are proposing to reduce the current price by 10% and increase spending on advertising by $10,000 each year. What effect will this have on the margin of safety?