Pass the CIMA Certificate BA2 Questions and answers with ExamsMirror

PQR Manufacturing Ltd. has £3,000,000 of fixed costs for the forthcoming period. The company produces a single product 'X', which has a selling price of £75 per unit and total cost of £50.

75% of the total cost represents variable costs.

What are the break-even units?

Refer to the Exhibit.

Zepher Ltd. manufactures three products, which require the same type of machine. The following fixed cost and profit per unit is available:

In a period in which machine hours are in short supply, which of the following options is the rank order of production?

Answer is:

SP Limited operates an absorption costing system. It uses a predetermined overhead absorption rate based on machine hours. Budgeted factory overheads for the year were £1,080,000 but actual overhead incurred was £1,046,000. Budgeted machine hours were 120,000 and actual machine hours were 119,000.

Overheads for the period were.

Refer to the exhibit.

Budget information for 'Crome Ltd' is as follows:

The budgeted cost allowance for the sale of 1000 units would be:

Refer to the exhibit.

Each unit of product ‘Smitten’ uses 5 kgs of material 'Z'.

The budgeted details for March are as follows:

It is anticipated that sales of product ‘Smitten’ in March will be 20000 units.

The amount of material 'Z' that needs to be purchased in March is:

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

The variable overhead efficiency variance is:

Refer to the exhibit.

The budgeted contribution for last month was $53,600. The variances reported were as follows:

The actual contribution for last month was:

Based upon extensive historical evidence, a company’s daily sales volume is known to be normally distributed with a mean of 1,728 units and a standard deviation of 273 units.

What is the probability that, on any one day, the sales volume will be at least 1,300 units?

The records of a manufacturing company show the following relationship between total cost and output.

The budgeted output for Period 3 is 27,000 units. Assume that previous cost behaviour patterns will continue.

What is the total budgeted cost for Period 3?

Give your answer in the nearest whole number.