A factory provides you information about overheads for given period. Budgeted output 25,000 units, budgeted hours 4,000, budgeted fixed overhead OMR 10,000 and budgeted variable overhead OMR 6,000. Actual output 24,000 units, actual hours 3,750, actual fixed overhead OMR 11,000 and actual variable overhead OMR 5,500. Calculate variable overhead expenditure variance.

a.

OMR 3,875 F

b.

OMR 3,875 A

c.

OMR 125 F

d.

OMR 125 A

q2

A factory provides you information about overheads for given period. Budgeted output 25,000 units, budgeted hours 4,000, budgeted fixed overhead OMR 10,000 and budgeted variable overhead OMR 6,000. Actual output 24,000 units, actual hours 3,750, actual fixed overhead OMR 11,000 and actual variable overhead OMR 5,500. Calculate variable overhead cost variance.

a.

OMR 500 F

b.

OMR 260 F

c.

OMR 500 F

d.

OMR 260 A

q3

Victor Industries initiated the process of setting standards for the forthcoming period. The standard production cost of one of their products, V50, is determined as OMR 250. Administration, selling and distribution overhead are to be absorbed at a rate of 12% of standard production cost. Determine standard selling price of productV50 if a mark-up of 20% is made.

a.

OMR 280

b.

OMR 336

c.

OMR 300

d.

None of the options

q4

A and B are joint products having selling price of OMR 6 per unit and OMR 4 per unit respectively. During a period 6,000 units of A and 7,000 units of B are produced by incurring a joint cost of OMR 30,000. Allocate joint costs on the basis of unit prices.

a.

A OMR 13,486, B OMR 16,154

b.

A OMR 18,000, B OMR 12,000

c.

A OMR 12,000, B OMR 18,000

d.

A OMR 20,000, B OMR 10,000

q5

Victor Industries initiated the process of setting standards for the forthcoming period. One of their products, V50, needs 10 Kg of material A and 6 Kg of material B, at a standard price of OMR 5 per kg and OMR 8 per kg respectively. Direct labour will cost OMR 6 per hour and each unit of V50 requires 4 hours of labour. Calculate standard prime cost for one unit of product V50.

a.

OMR 122

b.

None of the options

c.

OMR 98

d.

OMR 24

A process needs input of 500 units and 5% of normal loss is expected. The total cost incurred was OMR 9,000. Which of the following situation shows that there is an abnormal gain?

a.

If actual output is 460 units

b.

If actual output is 475 units

c.

If actual output is 470 units

d.