CIMA BA2 - Fundamentals of Management Accounting CIMAPRA17-BA2-1 Exam Practice Test

A company manufactures laptop computers. Which of the following would be classified as direct labor?

Refer to the exhibit.

BBB has drawn up the following flexed budgets for the year:

What would be the total budgeted costs at the 80% level of activity?

The variable overhead expenditure variance is:

A company uses an integrated accounting system and absorbs production overhead using a predetermined rate of $6 per machine hour.

Last period a total of 25,500 machine hours were worked and the actual production overhead incurred was $158,000.

The accounting entries for the absorption of production overhead for the period would be:

It is company policy that the closing inventory of finished goods must be equal to 10% of the following month's budgeted sales. The budget sales for November and December are 8,000 and 9,000 units respectively.

The budgeted production for November will be:

A company operates an absorption costing system. Overheads are absorbed using a pre-determined absorption rate using labour hours. In the period actual labour hours were 10,600, 400 hours below budget. Actual overheads for the period were 234,680 and there was an under-absorption of overheads of 1,480.

What was the budgeted level of overheads?

Which TWO of the following are characteristics of Management Accounts? (Choose two.)