Multiple question:

1.Major factors that are considered when forecasting sales will differ depending on the industry and nature of the firm. Which of the following would be classified as one of external factor.

A. Sales trend of the company

B. Political and legal events

2. One of the purpose of budget is to evaluate performance and motivate employees to work towards achieving goal congruence. Which of the following may discourage acceptance of budget.

A. Achievement of targets is accompanied by rewards that are valued

B. Targets are considered achievable

C. There is frequent feedback on performance

D. Targets are developed using top down approach

3. Meadow Sdn Bhd produces hand tools. A sales budget for the next four months is as follows: March 10,000 units, April 13,000, May 16,000 and June 21,000. Meadow Sdn Bhd's ending finished goods inventory policy is 10% of the following month's sales. March 1 inventory is projected to be 1,400 units. How many units will be produced in April?

A. 9,900 B. 12,700 C. 13,300 D. 16,500

4 Rafiq who is a divisional manager has consistently overstated the amount of resources needed in his budget to ensure a favourable performance for his division. His current budgeting behavior had been known by his accountant where he believes this could bring negative impacts to the division in the long term. Below is the possible impacts of Rafiq's behaviour except:

A. Allow the company to sustain in the business for long term period.

B. Allow him to achieve his production goals without exceeding the budget

C. Protect him from any kind of uncertainties in the environment that he might face

D. Encourage him to engage in padding the budget which later may lead to inefficient and ineffective operation.

5. Demco Berhad produces a single product and used flexible budgetary control system as part of company's planning. The company assigns the manufacturing overhead costs to production on the basis of machine hours. Below is part of the budgeted overhead cost based on machine hours: Capacity 80% 100% Machine hours 40,000 50,000 Maintenance RM34,000 RM46,000 Supplies RM28,000 RM30,000 During April 2020, the company operated at 85% of machine hours and the actual overhead cost for maintenance and supplies are RM38,750 and RM26,375 respectively. The maintenance cost is a semi variable where there is a step up cost of RM5,000 in fixed cost element for volumes in excess of 40,000 machine hours. The actual fixed costs remains as budgeted. Calculate the variable cost per machine hour for maintenance cost above.

A. RM0.20 per machine hour

B. RM0.60 per machine hour

C. RM0.70 per machine hour

D. RM1.20 per machine hour

7. Kayan Berhad specializes in manufacturing of wooden furniture for both local and foreign market. Recent budget has been prepared at 24,000 units by Encik Haiqal, the operation manager. The budgeted material cost at 24,000 units is RM216,000 while at 20,000 units is RM180,000. The actual production and sales unit for the month of July 2020 is 22,000 units. Using the principles of flexible budgetary control system, calculate the revised budgeted material cost for the month of July 2020.

A. RM199,500

B. RM199,000

C. RM198,000

D. RM198,50

8.Simms Corporation had a favourable direct-labor efficiency variance of RM6,000 for the period just ended. The actual wage rate was RM0.50 more than the standard rate of RM12.00. If the company's standard hours allowed for actual production totaled 9,500 hours, determine actual hours worked.

A. 9,000 hours B. 9,020 hours C. 9,980 hours D. 10,000 hour

9.Below are extracted standard cost card for a unit of product:

Skilled labour 3 hours @ RM10 per hour Unskilled labour 2 hours @ RM12 per hour Budgeted production 5,000 units

Actual information was as follows: Skilled labour 10,000 hours at a total cost of RM100,000 Unskilled labour 12,000 hours at a total cost of RM150,000

Actual production 4,550 units . Calculate the Labour yield variance for the product

A. RM8,100 (A)

B. RM8,100 (F)

C. RM24,300 (F)

D. RM24,300 (A)

10.Victory Sdn Bhd recently completed 52,000 units of a product that was expected to consume 15 kgs of direct material X and 35 kgs of direct material Y per finished unit. The standard price of the direct material X was RM9 per kg and direct material Y was RM8 per kg. The actual consumption of direct material X and Y are 775,550 kgs and 1,827,450 kgs respectively. Calculate the material mix variance for material X.

A. RM48,150 (F)

B. RM48,150 (A)

C. RM5,350 (F)

D. RM5,350 (A)