Question
Product X and Product Y are outputs of a single process which incurred a joint cost of OMR 25,000. Estimated profit on the selling price
Product X and Product Y are outputs of a single process which incurred a joint cost of OMR 25,000. Estimated profit on the selling price is: X -20% and Y -15%. Sales value of X and Y are OMR 30,000 and OMR 40,000 respectively. Find out the estimated total cost of X and Y if net realisable value method is used for apportioning joint costs.
a.
X OMR 24,000, Y OMR 34,000
b.
X OMR 25,000, Y OMR 25,000
c.
X OMR 30,000, Y OMR 40,000
d.
X OMR 34,000, Y OMR 24,000
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
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
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
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
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.
If actual output is 480 units
-
A process yields 70% of input as main product and 25% as by-product. 10,000 units were given as input at a cost of OMR 18,000. Other charges incurred are OMR 4,000. Calculate the units lost in the process.
a.
500 units
b.
2,500 units
c.
None of the options
d.
7,000 units
-
A company manufactures product A which yields two by-products X and Y. Joint cost incurred is OMR 40,000, of which, X and Y are accountable for OMR 15,000. Further processing costs incurred are: OMR 3,000 for A, OMR 2,500 for X and OMR 1,000 for Y. Determine the profit earned on A, if the sales value of A is OMR 35,000.
a.
OMR 7,000
b.
OMR 3,500
c.
None of the options
d.
OMR 17,000
The standard material requirement for one unit product of Beta is given below:
| Material | Quantity (kilograms) | Rate per Kg (OMR) |
| X | 7 | 6 |
| Y | 5 | 3 |
During a period 10 units of Beta were produced. Details of material consumed are:
| Material | Quantity (kilograms) | Rate per Kg (OMR) |
| X | 75 | 5 |
| Y | 60 | 4 |
Determine material usage variances (OMR).
a.
X 30 F, Y 30 F
b.
X 25 F, Y 40 F
c.
X 25 A, Y 40 A
d.
X 30 A, Y 30 A
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Find out labour yield variance using the given information. Actual output 800 units, standard output 1,000 units, standard rate OMR 30 per hour and standard time 3,000 hours.
a.
OMR 6,000 F
b.
OMR 18,000 A
c.
OMR 6,000 A
d.
OMR 18,000 F
Clear my choice
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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 fixed overhead expenditure variance.
a.
OMR 250 A
b.
OMR 1,000 A
c.
OMR 1,625 A
d.
OMR 1,625 F
-
A process yields 60% of input as main product and 30% as by-product. 10,000 units were given as input at a cost of OMR 18,000. Other charges incurred are OMR 3,000. Calculate cost of the main product.
a.
OMR 21,000
b.
OMR 3,000
c.
OMR 7,000
d.
OMR 14,000
-
The overhead absorption rate for a period is predetermined as OMR 2.25 per hour. Expected hours for the period was 2,500 while the actual hours used were 2,400 hours. Determine the amount of applied overhead.
a.
OMR 4,900
b.
OMR 5,400
c.
None of the options
d.
OMR 5,625
-
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The Operational Auditing Handbook Auditing Business And IT Processes
Authors: Andrew Chambers, Graham Rand
2nd Edition
0470744766, 978-0470744765
