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Each finished unit of merchandise Haw contains 1.25 cm of Material H. Budgeted sales of merchandise Haw in the period is 25,000 units. Budgeted data for the month of December are as follows:

1st December Finished goods 2,300 units

31st December Finished goods 2,000 units

Opening inventory of raw materials 12,800 cm

Closing inventory of raw material 9,000 cm

What was the purchase of Material H?

Answer: __________ cm

Job for customer XYZ has been completed at a total production cost of 7266. Administration and selling overheads are applied at 20% of production cost. The selling price of each job is established so as to provide a GROSS profit margin of 30% of sales.

What is the selling price of Job for the customer XYZ?

Answers:

A.

9446

B.

10380

C.

11336

D.

12456

The costs incurred in the manufacture of 75,000 units of a product are:

Direct materials

$80,000

Direct labour

$15,000

Variable overheads

$32,000

Fixed overheads

$130,000

If output increases by 15%, what will be the effect, if any, on the variable cost per unit?

Answers:

A.

Decrease more than 15% per unit

B.

Decrease less than 15% per unit

C.

Increase more than 15% per unit

D.

No effect

The following data was recorded last period for production department that under the management of Mr.Budre.

Budgeted labour hours= 2,700 hours

Number of units of product Xaview manufactured = 350 units

Number of units of product Yonni manufactured = 400 units

Standard hours to produce one unit of Xaview = 3 hours

Standard hours to produce one unit of Yonni = 4 hours

Actual labour hours worked = 3,110 hours

In order to measure the productivity of a labour , calculate the capacity ratio ?

Answers:

A.

115%

B.

85.2%

C.

98.1%

D.

117.4%

The following data was recorded last period for production department that under the management of Mr.Budre.

Budgeted labour hours= 2,700 hours

Number of units of product Xaview manufactured = 350 units

Number of units of product Yonni manufactured = 400 units

Standard hours to produce one unit of Xaview = 3 hours

Standard hours to produce one unit of Yonni = 4 hours

Actual labour hours worked = 3,110 hours

In order to measure the productivity of a labour , calculate the activity ratio ?

Answers:

A.

115%

B.

85.2%

C.

98.1%

D.

117.4%

The following data was recorded last period for production department that under the management of Mr.Budre.

Budgeted labour hours= 2,700 hours

Number of units of product Xaview manufactured = 350 units

Number of units of product Yonni manufactured = 400 units

Standard hours to produce one unit of Xaview = 3 hours

Standard hours to produce one unit of Yonni = 4 hours

Actual labour hours worked = 3,110 hours

In order to measure the productivity of a labour , calculate the efficiency ratio ?

Answers:

A.

115%

B.

85.2%

C.

98.1%

D.

117.4%

The following production overhead costs relate to a production department AB,

Budget $372,000

Actual $425,000

Absorbed $391,000

Calculate the over or under absorbed of the overhead?

Answers:

A.

overheads were over-absorbed by $53,000

B.

overheads were over-absorbed by $34,000

C.

overheads were under-absorbed by $34,000

D.

overheads were under-absorbed by $53,000

An accountancy firm had an overhead budget of $51,070 for a period. Actual overhead

expenditure in the period was $52,400. Overheads are absorbed on the basis of client

hours worked which totalled 2,375 in the period and resulted in under-absorption of $657

What was the budgeted overhead absorption rate per client hour?

Answers:

A.

$21.62

B.

$22.17

C.

$21.50

D.

$22.06

The Laspeyre index of retails prices for 20X9 ( with a base year of 20X2) is 197.2 .

The corresponding Paasche index is 198.9

Calculate Fisher's ideal index.

Answers:

A.

198.05

B.

170.046

C.

2793.11

D.

0.0706

The management of Lesley empire co. estimates that credit sales for January, February, March and April will be $180,000, $210,000, $230,000, and $160,000,

respectively. Experience has shown that collections are made as follows:

In month of sale 25%

In first month after sale 60%

In second month after sale 10%

The collections from customers in march is

Answers:

A.

$210500

B.

$194000

C.

$206500

D.

$230000

If an asset costs $65,000 and is expected to have a $5,000 salvage value at the end of its ten-year life, and generates annual net cash inflows of $5,000 each year, the cash payback period is

Answers:

A.

12 years.

B.

13 years.

C.

14 years.

D.

15 years.

EMC bicycle co. is a retailer of bicycles. The most popular bicycle has an monthly demand of3000 units. Demand is predictable and spread evenly throughout the year.

The bicycles are purchased by PR for $250 each. Ordering costs are $100 per order and the annual cost of holding one bicycle in inventory is $50.

Calculate the economic order quantity (EOQ) for the children's bicycle.

Answers:

A.

379.5

B.

109.5

C.

1732.5

D.

187.5