Total costs are Sh.100,000 when 8,000 units are produced; of this amount, variable costs are Sh.68,000. What are the total costs when 10,000 units are produced?

Select one:

a. Sh.97,000.

b. Sh.168,000.

c. Sh.92,000.

d. Sh.100,000.

XYZ Company uses flexible budgets. At normal capacity of 10,000 units, budgeted manufacturing overhead is: Sh.50,000 variable and Sh.135,000 fixed. If XYZ Company had actual overhead costs of Sh.187,500 for 11,000 units produced, what is the difference between actual and flexible budget costs?

Select one:

a. Sh.6,000 favorable

b. Sh.2,500 favorable

c. Sh.4,500 unfavorable

d. Sh.2,500 unfavorable

Busia Manufacturing LTD accounting records reflect the following inventories:

Dec. 31, 2020 Dec. 31, 2019

Sh000 Sh000

Raw materials inventory 310,000 260,000

Work in process inventory 300,000 160,000

Finished goods inventory 190,000 150,000

During 2020, Sh.500,000,000 of raw materials were purchased, direct labour costs amounted to Sh.600,000,000 and manufacturing overhead incurred was Sh.480,000,000.

Required

The total raw materials available for use during 2010 for Busia Manufacturing LTD is Sh._____

Select one:

A. 450,000,000

B. 810,000,000

C. 260,000,000

D. 760,000,000

Busia Manufacturing LTD accounting records reflect the following inventories:

Dec. 31, 2020 Dec. 31, 2019

Sh000 Sh000

Raw materials inventory 310,000 260,000

Work in process inventory 300,000 160,000

Finished goods inventory 190,000 150,000

During 2020, Sh.500,000,000 of raw materials were purchased, direct labour costs amounted to Sh.600,000,000 and manufacturing overhead incurred was Sh.480,000,000.

Required

Busia Manufacturing LTD total manufacturing costs incurred in 2020 amounted to Sh._____

A.

B.

C.

D.

ANSWER:

Select one:

A. 1,490,000,000

B. 1,530,000,000

C. 1,580,000,000

D. 1,390,000,000

Busia Manufacturing LTD accounting records reflect the following inventories:

Dec. 31, 2020 Dec. 31, 2019

Sh000 Sh000

Raw materials inventory 310,000 260,000

Work in process inventory 300,000 160,000

Finished goods inventory 190,000 150,000

During 2010, Sh.500,000,000 of raw materials were purchased, direct labour costs amounted to Sh.600,000,000 and manufacturing overhead incurred was Sh.480,000,000.

Required

If Busia Manufacturing LTD cost of goods manufactured for 2020 amounted to Sh.1,390,000,000 its cost of goods sold for the year is sh._______

Select one:

A. 1,500,000,000

B. 1,350,000,000

C. 1,250,000,000

D. 1,430,000,000

Kimbo PLC has three subsidiaries. Subsidiary Y has a controllable margin of Sh.150,000 on revenues of Sh.1,000,000. Average invested assets were Sh.600,000. Kimbo PLC requires a 15% minimum rate of return. What is the ROI?

Select one:

a. 15%

b. 25%

c. 9.375%

d. 60%

The actual materials price (AP) was Sh.4.50, the actual quantity (AQ) of material was 8,500 units, and the materials price variance (PV) was Sh.4,250 favourable. The standard materials price (SP)

Select one:

a. was Sh.4.25

b. was Sh.4.00

c. was Sh.5.00

d. was Sh.4.75

The fixed costs per unit are Sh.15 when a company produces 20,000 units of product. What are the fixed costs per unit when 15,000 units are produced?

Select one:

a. Sh. 15.

b. Sh. 4.

c. Sh. 20.

d. Sh. 6.

The standard hourly rate was Sh.280. The actual rate was Sh.260. The labour rate variance was Sh.120,000, favourable. The actual labour hours:

Select one:

a. were 6,000

b. were 1,000

c. were 6,400

d. were 1,500

The standard units (SQ) were 5,200, the standard price (SP) was Sh.3.25, and the materials quantity variance (QV) was Sh.325 unfavourable. The actual units (AQ)

Select one:

a. were 5,100

b. were 5,000

c. were 5,300

d. were 5,200