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EMA1J09 ©CGA-Canada, 2009 Page 1 of 7 CGA-CANADA MANAGEMENT ACCOUNTING FUNDAMENTALS [MA1] EXAMINATION June 2009 Marks Time: 3 Hours Note: Except for multiple-choice questions, all calculations must be shown to obtain full marks. 24 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: 3 marks each a. The 2009 static budget for Xylophone Company estimates a fixed manufacturing overhead cost of $200,000. The actual production quantity for 2009 was within the relevant range and the overhead volume variance was unfavourable. Based on this information, which of the following statements is true? 1) The flexible budget, based on actual quantity, will show that the fixed overhead cost is less than $200,000. 2) The flexible budget will show that the fixed overhead cost is more than $200,000. 3) There was no fixed overhead spending variance for 2009. 4) The company produced less than the quantity on which the static budget was based. b. The cost of production report for the fabrication department of a company shows that during July, total costs accounted for were $4,689. During the month, transferred-in costs were $1,333; raw material costs were $2,100; direct labour was $855; and overhead cost was $401. The department transferred out $4,500 at the end of the month. What was the cost of beginning work in process for July? 1) $ 0 2) $ 189 3) $ 1,256 4) $ 3,356 c. Beginning work in process in the assembly department of a company was 3,000 units and 50% completed. During the year, 20,000 units were completed and delivered to customers. Ending work in process was 5,000 units and 80% completed with respect to conversion. What are the equivalent units for conversion, assuming the weighted-average method is used? 1) 22,500 2) 23,500 3) 24,000 4) 25,000 Continued. ..
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EMA1J09 ©CGA-Canada, 2009 Page 2 of 7 d. Which of the following is one reason that estimated overhead costs rather than actual overhead costs are used in the costing process? 1) Actual costs cannot be determined accurately. 2) Customers do not want to pay the actual costs because they believe that management will have no reason to be efficient. 3) Managers are more concerned that operations are running smoothly and do not want to waste time. 4) Managers want to know the accounting system’s valuation of completed jobs before the end of the period. e.
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This note was uploaded on 11/15/2010 for the course CGA ma1 taught by Professor ... during the Spring '10 term at York Tech.

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