Fundamentals Pilot Paper - Knowledge Module, Paper F2

Management Accounting                                                                                     

1    C

2    A

3    C

(litres)   Normal loss           Actual loss          Abnormal loss         Abnormal gain

Process F                       5,200                6,100                  900                     -

Process G                       1,875                1,800                     -                   75

4    B

Marginal costing profit:

(36,000 - (2,000*(63,000/14,000))

$27,000

5    B

Did cost:                                 $136,000

Should cost: (53,000 kg $2·50)            $132,500

Price variance:                             $3,500

6    B

7    C

8    D

9    B

10   B

11   A

(36,000 + (200,000 x 12%))/200,000 = 30%

12   C

13   C

Using high low method:

Variable cost

(170,000 - 5,000 - 135,000)/(22,000 - 16,000) = $5

Fixed cost:

135,000 - (16,000*5) = 55,000

Cost for 20,000 units:

(20,000*5) + (55,000 + 5,000) = $160,000

14   A

15   B

16C

17  A

Variable production cost per unit = (15,120 - 11,280)/(10,000- 6,000) = 3,840/4,000 = $0·96

Fixed cost = 11,280 - (6,000 x 0·96) = $5,520

85% capacity = 8,500 units.

Flexible budget allowance for 8,500 units = $5,520 + (8,500 x 0·96) = $13,680

18  C

At 13% NPV should be -10

Using interpolation: 10% + (50/60)(10% - 13%) = 12·5%

19  D

20  D

21  A

1,700 units*10                             $17,000

300 units*0·4*10                            $1,200

Opening work in progress value              $1,710

Total value                                $19,910

22  A

(Actual hours - Budgeted hours) * standard rate

(24,000 - 25,000)*5 = $5,000 adverse

23  A

24  A

25  B

(budgeted quantity - actual quantity) * standard profit per unit

(1,000 - 900)*(50 - 39) = $1,100

26  B

27  A

5,000 = x + x/·08

5,000 = 13·5 x

Value of annual perpetuity = 5,000/13·5 = $370

28  C

29  D

200 units*(3/60)*18 = $180

30  A

Actual cost                               $108,875

Absorbed cost                             $105,000

Under absorbed                              $3,875

31B

32  C

Total number of degrees = 360

Proportion of market 3 sales: (50,000/300,000)*360 = 60

33  C

34  C

35  C

Joint costs apportioned to H: ((330,000/(420,000 + 330,000))*350,000 = $154,000

Closing inventory valuation(HH): (30,000/330,000)*(154,000 + 66,000) = $20,000

36  D

37  C

Month 1: production >sales             Absorption costing > marginal costing

Month 2: sales> production             marginal costing profit> absorption costing profit

A and C satisfy month 1, C and D satisfy month 2; therefore C satisfies both

38  D

($120,000 - ($650,000*18%) = $3,000

39  B

40  A

(30,000 + 300 - 800 + 550 - 400 - 800) = $28,850

41  B

42  D

Cost per equivalent unit (480,000/10,000) = $48

Degree of completion= ((144,000/48)/4,000) = 75%

43  C

{(2*20*(4*20,000))/(0·06*25)}0·5

1,461 units

44  D

Direct cost                                                              $95,000

Proportion of cost centre X (46,000 + (0·10*30,000))*0·50                $24,500

Proportion of cost centre Y (30,000*0·3)                                   $9,000

Total overhead cost for P                                               $128,500

45  D

46  D

Sales volume variance:

(budgeted sales units - actual sales units) * standard profit per unit = 10,000 adverse

Standard profit on actual sales: (actual sales units * std profit per unit) = $120,000

Fixed budget profit: (120,000 +10,000) = $130,000

47   B

Budgeted production (19,000 + 3,000 - 4,000) = 18,000 units

RM required for production (18,000*8) = 144,000 kg

RM purchases (144,000 + 53,000 - 50,000) = 147,000 kg

48   A

49   C

(($1,750*3 hrs) + ($5,000*4 hrs))*7 = $176,750

50   B