SECTION A Answer All Questions in this section 1. Ajobbing company operates a premium bonus scheme for its employees of 75% of the time saved compared with the standard time allowance for a job at nommal hourly rate. The data relating to job 1300 completed by an employee is as follows: Allowed time for the job 4 hours, time taken to complete the job 3 hours Normal hourly rate of pay GH10. What is the total pay of the employee for the job? A GH4 46 B. GH440 C. GH 475 D.GH 38 The data below relates to Questions 2 & 3 New horizon LTD budgeted to produce 25,000 units within the budgeted period of 100.000 hours in the 2007 financial year. Actual output during the period was 27,000 units and took 120,000 hours to make 2. Calculate the efficiency ratio A 90% B 120% C 1084 D. 926% 3. Calculate the production volume ratio. A 90% B. 120% C. 1084 D. 92.6% 4. Which of the following is a feasible value for a correlation coefficient? A +12 BO C-12 D:20 5. An organisation has the following cost details for its product. The total cost of 5.000 units is GH50,000 and the total cost of making 20,000 units is GHE 140,000. Within this range of activity the total fixed costs remain unchanged. What is the variable cost per unit? A CH4 B.GH45 CGH 6 D.GH 8 6. Afactory consists of two production cost centres P and Q. The total overheads allocated and apportioned to each centre are as follows: GH 180,000 GH 120,000 GH 128,000 GH 140,000 P Q T v Percentage of service cost centre to 70% 30% 0 0 Percentage of service cost centre V to 40% 40% 20% 0 The company apportions service cost centre costs to production cost centres using a method that fully recognises any workdone by one service cost centre for another What are the total overheads for production cost centre Pafter the reapportionment of all service cost centre costs? AGH 345,200 B. GHC 350 600 C. GH355.000D. GH226,400 The information below relates to question 7 and 8. Budget Actual Production 2,500 units 2,800 units Fixed production overheads GHE350,000 GHE380,000 1,900 units 1450 Fixed overheads are absorbed on the basis of output: 7. The production overhead absorbed during the period was? A GH 392,000 B.. GH4270,000 C.. GH4266,000 D. GH169,000 8. Production overhead was A Under absorbed by GH30,000 B. Under absorbed by GH12,000 C.Over-absorbed by GH30,000 D.Over-absorbed by GH 12,000 Sales SECTION Question 1 1. The data below relates output to costs Output Costs munt Gm 7. The production overhead absorbed during the period was? A GH 392,000 B.. GH270.000 C. GH4266,000 D. GH169,000 8. Production overhead was A Under absorbed by GH30,000 B. Under absorbed by GH12,000 C.Over absorbed by GH 30000 D. Over absorbed by GH 12 000 SECTION Question 1 1. The data below relates output to costs. Output Costs 000 units GHE000 20 82 16 70 24 90 22 85 18 73 Required i. Estimate the least squares regression line of output on costs i Estimate the total costs for an output level of 22,000 What is the degree of correlation between output and costs. To what extent costs dependent on output Question 2 Basies Limited's production and sales details for December 2010 was as follows: Production (Units) 12,000 Sales (Units) 10.000 GH/unit Sales 30 Material 10 Labour Variable production overhead Variable selling overhead Fixed costs for the month are as follows GHE Fixed production cost 36,000 Fixed selling and distribution cost 26,500 Required 1. Prepare a profit statement for the month using the marginal costing approach? il Using the profit in () derive the absorption costing profit. - ZY-bx or as Y-bX N - NEX2 - (3x)2 be N - ra fax - oh ne v- SECTION A ANSWER ALL QUESTIONS 1. The relationship between advertising cost and sales is shown by the coefficient of correlation 544 680 Explain the extent to which advertising cost affects sales. A 80% of sales depend on advertising cost B. 80% of advertising cost depends on sales C. 64% of advertising cost depends on sales D. 64% of sales depend on advertising cost 2 Date Receipts/Units Total Value (GHissues/Units 7-Aug 3,000 9,900 16 Aug 4000 3,000 12,600 5.000 Opening Stocks were 1000 units, valued at GH 2,600. What was the value of stock issued in the month using FIFO A GH 31, 200. B.GH 30,700 CGH30,900 D.GH 31 500 24 Aug 30 Aug The following data for product JAS relate to questions 3.4 and 5. Average usage 350 per day Minimum usage 180 per day Maximum usage 420 per day Lead time for replenishment 11-15 days Re-order quantity 6,500 units Based on the data above, what is the maximum level of stock? 3. A 10,800 B. 12,800 C. 6,500 D. 5,250 4. What is the re-order level A 6300 B. 4620 C. 2.700 D. 5250 5 What is the maximum level of stock? A 10.820 8.12.800 D.5.250 6. A cost is described as staying the same over a certain activity range and then increasing but remaining stable within a higher revised activity range in the short term. What type of cost is this? A. A fixed cost. B. A variable cost C. A semivariable cost. D. A stepped fixed cost SECTION Question 1 2.a. The following wages and salaries information is provided for XYZ Limited for the month of January 2011 Direct Production Admin Selling Total Labour Overhead Expensexpenses GHE GHE GHE GHE GHE Gross wages 45.000 15,000 25,000 20,000 105.000 Overtime 5.000 1000 Q Q 6,000 50,000 16,000 25.000 20,000 111,000 then increasing but remaining stable within a higher revised activity range in the short term What type of cost is this? A. A fixed cost. B. A variable cost C. A semivariable cost. D. A stepped fixed cost SECTION B Question 1 2. a. The following wages and salaries information is provided for XYZ Limited for the month of January 2011 Direct Production Admin Selling Total Labour Overhead ExpenseExpenses GHE GHE GHE GHE GHE Gross wages 45,000 15,000 25.000 20.000 105.000 Overtime 5.000 1,000 2 6,000 50,000 16,000 25,000 20,000 111,000 Additional information is as follows: 1. The overtime worked and paid for was not at the request of a customer il. Employee's social security contribution is 5 1/2% of gross wage Employer's social security contribution is 13% of gross wage. iv. Assume a flat rate tax of 10% Required: Analyse the wages and salaries under the following headings Gross wages il Deductions ii. Total Deductions iv. Net pay Social Security employer's contribution QUESTION 2 The following data relate to a stock tem for a car assembly plant Annual demand 96,000 Price per unit GH 80 Cost of placing an order 40 Annual holding cost per15% of price Required a 1. Complete the table below using the information above IL Which order quantity minimizes ordering cost and holding cost 11. What is the lowest annual purchasing ordering and holding costs for the stock Order Numbet Annual Average Annual Total of orderorder costock holding cost per held cost annum 400 600 800 1000 12001 1500