MANAGEMENT ACCOUNTING FUNDAMENTALS [MA1] EXAMINATION
Time: 3 Hours
Except for multiple-choice questions, all calculations must be shown to obtain full marks.
for each of the following unrelated items. Answer
of these items
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.
3 marks each
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
The flexible budget, based on actual quantity, will show that the fixed overhead cost is less than
The flexible budget will show that the fixed overhead cost is more than $200,000.
There was no fixed overhead spending variance for 2009.
The company produced less than the quantity on which the static budget was based.
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
2) $ 189
3) $ 1,256
4) $ 3,356
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?