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MCQ QUESTION Wildberry uses standard costing and variance analysis to evaluate their financials. The standard cost of making each unit in 2019 is as follows:

MCQ QUESTION

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Wildberry uses standard costing and variance analysis to evaluate their financials. The standard cost of making each unit in 2019 is as follows: per unit Direct material (plastic) (0.5kg per unit @ 4 per kg) 2 Direct labour (0.25 hour per unit @ 12 per hour) 3 Budgeted sales and production in 2019 were 1,000,000 units, budgeted sales price was 11 per unit and the budgeted fixed overheads was estimated at 3,400,000 per annum. Budgeted profit was calculated by the above figures as 2,600,000. Actual data for 2019 has been released as follows: Sales and production units 1,100,000 units 0.55 kg per unit @ 3.50 per kg (605,000 Material Cost kg in total) 0.3 hours per unit @ 12.50 per hour Labour Cost (330,000 hours in total) Fixed overheads 3,450,000 Sales price 10.50 per unit What was the material price and material usage variances? Select one: O a. Material Price: 550,000F and Material Usage: 220,000A o b. Material Price: 302,500F and Material Usage: 220,000A c. Material Price: 550,000F and Material Usage: 55,000A O d. Material Price: 302,500F and Material Usage: 55,000A Below is a list of disadvantages that may associate to Beyond Budgeting. Select which one is not associated to Beyond Budgeting. Select one: a. Without a budget, there is no overall framework of control which allows companies to plan, co-ordinate and control their activities. o b. There is a lack of a road map which details where a business is and where it wants to go. O c. Budgets may be very deeply ingrained in an organisation's fabric and operating culture. O d. Focuses on cost reduction not value creation A fixed cost is one that generally: Select one: o Varies in total during the accounting period as volume of activity changes Stays constant from year to year Stays constant per unit o Stays constant in total during the accounting period as volume of activity changes (within the relevant range) Outsourcing involves: Select one: Hiring external assets to complete a job The purchase of external labour to finish a contract Offering the contract to a competitor who has capacity to finish the job on time Obtaining goods from outside suppliers rather than making the goods within the business

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