q1The 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

-q2

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

q3

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

q4

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

-

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

q5

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

q6

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

q7

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