ca_exm_ma1_2005-03

ca_exm_ma1_2005-03 - CGA-CANADA MANAGEMENT ACCOUNTING 1...

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EMA1M05 ©CGA-Canada, 2005 Page 1 of 8 CGA-CANADA MANAGEMENT ACCOUNTING 1 EXAMINATION March 2005 Marks Time: 3 Hours Note: Except for multiple-choice questions, all calculations must be shown to obtain full marks. 30 Question 1 Select the best answer for each of the following unrelated items. Answer each of these items in your examination booklet by giving the number of your choice. For example, if the best answer for item (a) is (1), write (a)(1) in your examination booklet. If more than one answer is given for an item, that item will not be marked. Incorrect answers will be marked as zero. Marks will not be awarded for explanations. Note: 2 marks each a. Warson Ltd. is considering closing its Alberta division. Which of the following would not be relevant to the closure decision? 1) All variable production costs 2) Contribution margin on lost sales 3) Site cleanup costs 4) The salary of the branch manager to be transferred Note: Use the following information to answer parts (b) and (c): Redel Inc. has the following results for the current period: Budget Actual Fixed overhead $156,000 $160,000 Units produced 6,500 units 6,000 units Direct labour-hours (DLH) 13,000 hours 12,500 hours Fixed overhead is applied at $12 per DLH. Variable overhead is applied at $27.50 per DLH. The standard per unit is 2 DLH. Actual variable overhead was $310,600. b. Which of the following amounts represents the fixed overhead budget variance? 1) $4,000 U 2) $6,000 F 3) $10,000 U 4) $16,000 F c. Which of the following amounts represents the variable overhead variance? 1) $13,750 U 2) $19,400 F 3) $33,150 F 4) $46,900 F Continued. ..
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EMA1M05 ©CGA-Canada, 2005 Page 2 of 8 d. Monthly transportation costs at RFP Ltd. were $18,000 for 16,000 kg transported in July and $22,500 for 22,000 kg transported in August. If the company plans to transport 18,000 kg in September, what is the expected shipping cost? 1) $18,500 2) $19,500 3) $20,400 4) $24,000 e. On September 30, the fixed manufacturing overhead account of Atla Ltd. showed a debit balance of $6,000 after fixed manufacturing overhead had been applied for the month. If the actual total manufacturing overhead cost incurred in September was $108,600 and the production was 8,550 units, then what was the rate for applying fixed manufacturing overhead cost? 1) $12.00 per unit 2) $12.80 per unit 3) $13.00 per unit 4) $13.40 per unit f. Willin Ltd. uses the weighted-average method in its process costing system. Information for Department C for the month of January is as follows: Materials Conversion Work in process, beginning $ 4,000 $ 3,000 Current costs added $ 20,000 $ 16,000 Equivalent units 100,000 units 95,000 units Unit costs $0.24 $0.20 Goods completed 90,000 units Work in process, ending 10,000 units Materials are all added at the beginning of the process. The ending work in process is 50% complete with respect to conversion costs. How would the total “costs accounted for” be distributed between costs completed and transferred out, and ending work in process? Costs Completed
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ca_exm_ma1_2005-03 - CGA-CANADA MANAGEMENT ACCOUNTING 1...

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