Pass the CIMA Certificate BA2 Questions and answers with ExamsMirror

The standard labour cost for 1 component is $15.00 (5 hours at $3 per hour). Last month, 6,000 hours were worked at a cost of $17,000 to produce 1,100 components. The labour efficiency variance was:

A company currently allows a discount of 10% to customers who pay at the time of purchase. If 20% of customers pay immediately, the extra sales needed in July to increase the cash receipts in that month by £9,000 are:

A company’s cash budgetary plans show that there will be surplus cash for three months of the forthcoming year.

Which THREE of the following would be appropriate management actions in this situation?

Refer to the exhibit.

T operates a process costing system. Data is available for Process A for the month of July.

Inputs for the month:

Normal losses are 15% of input and can be sold for $6 per kg. Actual output was 2,600 kg. There is no opening or closing work in progress for the period.

What is the value of the output from the process in the month?

Refer to the exhibit.

Xell Ltd uses a standard costing system and therefore values all inventory at standard cost. During period 3 the price paid for material 'A' was £6 per kg less than the standard price.

The following information for material 'A' relates to period 3:

What was the material price variance for period 3?

The production manager of your company has asked you to explain the methods of overhead analysis used, in particular the meaning of reciprocal servicing.

Reciprocal servicing is:

Refer to the Exhibit.

The following forecast cash flows relate to a proposed investment in new delivery vehicles at a total cost of $75,000.

The internal rate of return (IRR) of the proposed investment is (to two decimal places)

C Ltd produces a chemical in a single process. Information for this process last month is as follows:

(a) Opening work in progress - 10000 kg valued at £10000 for direct material and £7500 for conversion costs.

(b) Materials input - 25000 kg at £1.10 per kg.

(c) Conversion costs - £17000

(d) Output during the month - 23000 kg.

(e) There were 7500 units of closing work in progress which was complete as to materials and 30% complete as to conversion.

(f) Normal loss for the month was 10% of input and all losses have a scrap value of 80p per kg.

What was the value of normal loss during the month?

CVP Limited manufactures a single product with a selling price of $25.60. Fixed costs are $122,880 per month and the product has a profit/volume ratio of 40%.

In a month when actual sales were $358,400, CVP's margin of safety in units was

Refer to the Exhibit.

The following details have been extracted from the receivables collection records of SBC:

The amount budgeted to be received in September from credit sales is, to the nearest £000: