1) Which of these is not a possible reason for an unfavourable Materials Price variance?

Select one:

a.You bought higher quality material

b.There was a shortage of that material on the market

c.The price of oil rose

d.Your factory workers were less efficient than usual

2) Which of these is not a possible reason for an unfavourable Materials Quantity variance?

Select one:

a.You produced some faulty products that had to be discarded

b.You bought lower quality material that damaged easily

c.Your factory workers were less efficient than usual

d.There was a shortage of materials on the market

3) Which one of the following should be involved in the overall budget preparation?

Select one:

a.Management and accountants

b.Managers in various departments

c.Accountants

d.Senior management

4) Each unit of product requires 15 minutes of labour time and each labour hour should cost $12. The number of units produced is 8,000. The company employs some part time workers and labour rates paid are $10 per hour. Actual labour hours worked have increased to 2,500 hours. Calculate the direct labour rate and efficiency variances.

Select one:

a.Labour rate variance: $5,000 favourable Efficiency variance: $6,000 unfavourable

b.Labour rate variance: $5,000 unfavourable Efficiency variance: $6,000 favourable

c.Labour rate variance: $4,000 unfavourable Efficiency variance: $5,000 favourable

d.Labour rate variance: $4,000 favourable Efficiency variance: $5,000 unfavourable

5) Microworld Ltd has a net profit margin of 6% pa and a return on investment (ROI) of 24%. Calculate the asset turnover.

Select one:

a.2.5 times

b.insufficient information given

c.3.82 times

d.4 times