Question 13

Kwaku Frimpong works produces and sell footwear.Budgeted revenue for the year to December 31,2019 was GHC15,000.This revenue is for a budgeted activity level of 750 pair of shoes. Actual results for the year under review recorded revenue of GHC10,500, for 550 pair of shoes. The revenue variance for the year under review will be

Select one:

a. GHC500 Adverse

b. GHC500 Favourable

c. GHC4,500 Favourable

d. GHC4,500 Adverse

Question 14

Consider the following two statements:Statement 1: Management accounting information is meant for external use only. Statement 2: Management accounting relies on both quantitative and qualitative information

Select one:

a. Both Statements are true

b. Both Statements are false

c. Statement 1 is true and statemnt 2 is false

d. Statement 1 is false and statement 2 is true

Question 15

Francis Ltd manufactures classroom furniture. Total cost in year 1 when output was 2,000 furniture set was GHC50,000; total cost was GHC60,000 when output was 2,500. In year 3, output level was 1,000 and associated cost was 30,000. Maximum capacity for Furnisoft Ltd is 6,000 furniture set. What will be the total cost for a planned activity level of 4,000 furniture set?

Select one:

a. GHC120,000

b. GHC100,000

c. GHC96,000

d. GHC90,000

Question 16

Davidson leather works produces and sell footwear. Budgeted Fixed Cost for the year to December 31, 2019 was GHC5,000. This cost relates to a budgeted activity level of 750 pair of shoes. Actual results for the year under review recorded Fixed cost of GHC6,500, for 550 pair of shoes. The Fixed expenditure variance for the year under review is

Select one:

a. GHC1,500 Favourable

b. GHC1,500 Adverse

c. GHC2,833 Adverse

d. GHC2,833 Favourable