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CIMA Fundamentals of management accounting Sample Questions:
1. Refer to the exhibit.
The management accountant has completed the initial allocation and apportionment of overheads as follows.
The service department costs are now to be reapportioned to the other departments as follows, taking account of reciprocal servicing.
After the service department costs have been reapportioned, the total overhead cost of Department A, to the nearest $, will be:
2. Refer to the exhibit.
The following data relates to Department A within a business unit.
The overhead absorption rate per direct labour hour for Department A is:
Give your answer to 2 decimal places.
3. Refer to the exhibit.
The budget for ORG for the month of September contained the following data:
During the month the actual number of units produced was 1,550. The management accounts showed a direct labour rate variance of $200 adverse and direct labour efficiency of $150 adverse.
The actual direct labour cost in the month was:
4. Refer to the Exhibit.
CM has produced the following budget information for next year:
The opening receivables balance represents 2 months sales. It is expected that the same level of sales will continue at an even rate throughout the year.
In an effort to improve receivables collection periods it is proposed to offer a discount of 5% for payment by cash. It is expected that 20% of customers will pay by cash. Of the remaining 80% credit sales, 40% will be settled within 1 month and 60% are expected to settle within 2 months.
What are the budgeted cash receipts from cash and credit sales in the year?
A) $184,400
B) $188,000
C) $190,800
D) $206,400
5. Xter Ltd produces product 'PZ'. The forecast sales for the forthcoming year are 50,000 units.
It is anticipated that there will be 10,000 units of opening inventory at the beginning of the year. However, management wishes to reduce this inventory by 30% by the end of next year.
The production budget for the forthcoming year will be
Solutions:
| Question # 1 Answer: Only visible for members | Question # 2 Answer: Only visible for members | Question # 3 Answer: Only visible for members | Question # 4 Answer: C | Question # 5 Answer: Only visible for members |
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