Try CIMA : P1 practice torrent pass for sure

TP makes wedding cakes that are sold to specialist retail outlets which decorate the cakes according to the customers' specific requirements. The standard cost per unit of its most popular cake is as follows:

The general market prices at the time of purchase for Ingredient A and Ingredient B were $23 per kg and
$20 per kg respectively.
TP operates a JIT purchasing system for ingredients and a JIT production system; therefore, there was no inventory during the period.
Prepare a statement which reconciles the flexed budget material cost and the actual material cost. Your statement should include the material price planning variances, and the operational variances including material price, material mix and material yield.
What was the material price planning variance for ingredient A?

• A. The Material price planning variance - Ingredient A was $71 000 F
• B. The Material price planning variance - Ingredient A was $72 000 F
• C. The Material price planning variance - Ingredient A was $75 000 F
• D. The Material price planning variance - Ingredient A was $73 000 F

Which THREE of the following statements relating to fixed overhead variances are correct?

• A. The total fixed overhead variance is made up of the fixed overhead expenditure variance, the fixed overhead efficiency variance and the fixed overhead capacity variance.
• B. The total fixed overhead cost variance in an absorption costing system is the amount of fixed overhead that has been under- or over-absorbed in the period.
• C. In a marginal costing operating statement reconciling budgeted contribution to actual profit only the fixed overhead expenditure variance and the fixed overhead volume variance are shown.
• D. The fixed overhead volume variance can be split into the fixed overhead efficiency variance and the fixed overhead capacity variance.
• E. The total fixed overhead cost variance in an absorption costing system is the difference between budgeted fixed overhead and actual fixed overhead incurred.

Which of the following statements is true?

• A. Standard costing is focused on achieving zero defects.
• B. Standard costing is best suited to a stable environment.
• C. Standard costing embraces the philosophy of continual improvement.
• D. Standard costing is focused on delivering quality products to customers.

A healthcare company specializes in hip, knee and shoulder replacement operations, known as surgical procedures. As well as providing these surgical procedures the company offers pre operation and post operation in-patient care, in a fully equipped hospital, for those patients who will be undergoing the surgical procedures.
Surgeons are paid a fixed fee for each surgical procedure they perform and an additional amount for any follow-up consultations. Post procedure follow-up consultations are only undertaken if there are any complications in relation to the surgical procedure. There is no additional fee charged to patients for any follow up consultations. All other staff are paid annual salaries.
The company's existing costing system uses a single overhead rate, based on revenue, to charge the costs of support activities to the procedures. Concern has been raised about the inaccuracy of procedure costs and the company's accountant has initiated a project to implement an activity-based costing (ABC) system.
The project team has collected the following data on each of the procedures.

Calculate the profit per procedure for each of the three procedures, using the current basis for charging the costs of support activities to procedures.
What was the profit for the knee procedure?

• A. $1210
• B. $1510
• C. $1390
• D. $1485

The budgeted production of product G for the period was 300 units. At the end of the period it was discovered that the standard hourly rate for labour should have been higher than that originally planned. Actual production was 450 units.
The labour rate planning variance would be calculated as:

• A. The revised standard cost of 300 units compared with the orginal standard cost of 300 units
• B. The revised standard cost of 450 units compared with the original standard cost of 450 units
• C. The revised standard cost of 300 units compared with the original standard cost of 450 units
• D. The revised standard cost of 450 units compared with the original standard cost of 300 units