Q105.

What double entry is required in the interlocking accounting system for the return
of indirect materials to inventory?
A. Dr Raw material inventory / Cr Production overhead
B. Dr Work in progress / Cr Raw materials inventory
C. Dr Raw material inventory / Cr Work in progress
D. Dr Production overhead /Cr Raw materials inventory
Q106. Data relating to one particular stores item are as follows:
Average daily issues 70 units
Maximum daily issues 90 units
Minimum daily issues 50 units
Lead time for the replenishment of stock 11 to 17 days
Reorder quantity 2,000 units
Reorder level 1,800 units
What is the maximum stock level (in units) for this stores item?
A. 2.950
B. 3,100
c. 3250
d. 3800
Q108. Philis paid 512 per hour for his first 40 hours per week, then time and a quarter for
any excess. On average he works 44 hours per week during which time he completes 60
units.
IF Phil method of remuneration was charged to per work, what rate would he have to be
paid to match his current earrings for an average week?
A $9 per Unit
B. $8.8 per unit
C. $8.1 per unit
D. $9.2 per unit
Q109. The following relate to direct workers on Job XVZ
Productive time at basic rate 200 hour @ $12 per hour
Productive time at overtime rate 10 hours @ basic rate and a half
Idle time 20 hours @ 12 per hour
Overtime was worked at the specific request of the customer so that job XYZ would be
completed early and was paid at a basic rate and a half. Idle time was due to a machine
breakdown.
What was the direct labor cost of job XYZ?
A. $2,820
B. $2.580
C. $2,520
D. $2.400
Q110. A firm monitors labor turnover. At the beginning of the year staff numbers were
1,600. During the year 860 staff left and 260 of these were replaced.
What is the labor turnover rate for the year?
A. 10.00%
B. 20.00%
C. 16.25%
D. 26.00%
Q112 A company has a stop of 3,000 at the beginning of 2017 during the year 340 new
staff were recruited to replace employees who had left. At the end of This year the total
number of staff was $2,200.
What was the labor turnover rate for the year to the nearest 1%?
A 15%
B 13%
C 11%
D impossible to find the answer without more information
Q113. What does an activity (production volume) ratio 105%?
A. That the budget hours were greater than the actual hours
B. That the standard hours of actual output exceeded the fixed budget hours.
C That the actual hour worked exceeded the flexible budget
D. That the actual hours worked were less than the standard hours of actual output.
Q114. Which of the following describes the method of payment for labor known as
'piecework"?
A. A fixed amounts is paid per unit of output achieved, irrespective of time
spent
B. A fixed amounts is paid per unit of output achieved, based on time spent
C. A fixed amounts is paid per unit of time spent, irrespective of output achieve
D. A fixed amount is paid per unit of time spent, based on output achieved
Q115. A company records include the following labor costs for a week
$
Cost of unavoidable idle time of direct worker 2000 (indirect)
basic wages paid to the supervisor of direct workers 3500 (indirect)
overtime premium of direct workers on jobs for specific customer 1750
General overtime premium of indirect workers 4600 (indirect)
What are the indirect labor cost for the week from these records
A 11850
B 8350
C 10100
D 4600
Q116. A jobbing company operates a premium bonus scheme for its employees of 75%
of the time saved compared with the standard time allowance for a job at the normal
hourly rate. the data relating to job 1206 complete by an employee is as follow:
Allowed time for job 1206 4 hours
time taken to complete job 1206 3 hours
Normal hourly rate of pay 8$
A 24
B 30
C 32
D 38
Q117 The following statement refer to situation occurring in prosecue of an organization
with operate a theory of consecutive processes:
(i) Direct labor is working at below the agree productivity level
(ii) Amazon breakdown has occurred
(iii) Direct labor is waiting for work to be completed in a previous process.
Week two of those situations could give rise to idle time?
A (1) and (ii) only
B (i) and (iii) only
C (ii) and (iii) only
D none of them is correct

Q118. Accounting for overheads: Budgeted fixed overheads for the period are $400,000
and the budgeted variable cost per unit is $10.00, Budgeted production is 80,000 units.
Inventories will be 200 units higher at the end of the period than the beginning.
Which of the following statements is correct?
"The (marginal costing/absorption costing) profit will exceed the (marginal
costing/absorption costing) profit by (52,000/S1,000)*
A. Marginal costing - absorption costing - S,1000
B. Marginal costing - Absorption costing - $2.000
C.Absorption costing - Marginal costing - $2.000
D.Absorption costing - Marginal costing - 51.000
Q119. Which of the following statements is correct in respect of a company using
absorption costing?
A. Apportionment means all departments get an equal share of overheads.
B. Any over or under-absorption of overheads is carried forward to the following month.
C. A factory-wide overhead absorption rate is calculated by adding cach of the
departmental overhead rates together and dividing by the number of departments.
D. Closing inventory is valued at full production cost.
Q120. A company uses absorption costing with a predetermined hourly fixed overhead
absorption rate. The following situations arose last month:
(i) Actual overhead expenditure was less than the planned expenditure. (il) Actual hours
worked exceeded planned hours,
Which statement is correct?
A. Situation (i) would cause overheads to be under-absorbed and situation (in) would
cause overheads to be over-absorbed.
B Situation (i) would cause overheads to be over absorbed and situation (in) would
cause
overheads to be under-absorbed.
C. Both situations would cause overheads to be over absorbed.
D. Both situations would cause overheads to be under absorbed,
Q122. A firm recorded a profit of $50,000 under marginal costing when Inventors
increases from 1,000 units at the start of the period to 1,400 units at the end of the period.
Under absorption costing the fixed production overhead absorption rate for the period
would be $12 per mit.
What would he the profit for the period under absorption costing?
A. $54,800
10. 550,000
C. $45.200
D. None of the above is correct
Q123,Absorption costing usually involves three stages:
(1) The absorption of overheads into cost units
(2) The allocation and apportionment of budgeted overheads to cost centers
(3) The reapportionment of budgeted service cost center costs to production cost centers
What is the correct order of these three stages?
a. 1,2,3
b. 2,1,3
c. 1,3,2
d. 2,3,1
Q124. A job overhead on the basis of machine hours worked the following information
is given for a year:

budget actual
machine hours 2600 2400
overheads 135200 128000
What are the total under/ over absorption of overheads in the year?
A 7200 under absorbed
B 3200 under absorbed
C 7200 over absorbed
D 3200 over absorbed

Q125. A firm recorded a profit of $50,000 under absorption costing when inventory
increased from 1,000 units at the start of the period to 1,400 units at the end of the period.
The fixed production overhead absorption rate for the period would be 512 per unit.
What would be the profit for the period under marginal costing?
A 554,800
B. 550.000
C $45.200 = 50,000-12x400
D. None of the above is correct
Q126. A firm that has two production cost centers (X and Y) Used absorption costing.
the following information has been extracted from the budget

X y total
overheads 50000 48000 98000
direct labor 4000 12000 16000
hours
machine hours 10000 4000 14000
Which two of the following overhead absorption rates are the best to use based on the
above information?
A 4 per direct labor for Y And 12.5 per direct labor for X
B 4 per direct labor for Y And 5 per machine hour for X
C 12 per machine hour for Y and 5 per machine hour for X
D 12 per machine hour for Y and 12.5 per direct labor hour for X
Q128. Budgeted and profit absorption costing would be 56,700 for a period With each
unit of inventory valued at $1O. Net profit marginal costing for the same period would be
$5,500 with inventory valued at $6 per unit. What would change in inventory during the
period?
A. Increase 300 units
B. Decrease 300 units
C No change
D None of the above is correct
Q129. A firm purchases a liquid in bulk for $15 per litre. The liquid is then packaged for
sale in 20 litres containers. It is expected that 20% of the liquid that is input to packaging
will be wasted through spillage.
What is the standard cost of liquid in each 20 litre container?
A 5360
1. 5375
C $240
D. 5300
Q131. A company operates a standard marginal costing system. Last month the company
sold 200 units more than it planned to sell. The following data relate to last month:
Standard Actual
Selling price per unit 40 38
Variable cost per unit 30 29
What was the favorable sales volume contribution variance last month?
A. $1,600
B. $1,800
C. $2.000 = (40-30)*200
D. $2.200
Q132. A firm uses flexible budgets. The budget for overheads is $45,000 based upon
production of 9,000 units. Overheads are semi-variable cost and 60% of the budgeted
overhead are fixed. In a period 8,100 units were produced.
What was the flexible overbend budget for the period?
A. $43.200
R. $42.300
C. $47,000
D. $40,500
Q133. The standard direct material cost for a product is $50 per unit (12:5 kg at $4 per
kg). Last month the actual amount paid for 45,600 kg of material purchased and used was
S173,280 and the direct material usage variance was $15,200 adverse.
What was the actual production last month?
A. 3.344 units
B. 3.520 units
C. 3,952 units
D. 4,160 units
Q134. A Company has an adverse material usage and plans to take action to eliminate
this variance in future months
Which of the following changes is LEAST likely to reduce the adverse variance
A. Purchase of better quality materials
B. More training for workers
C. Bulk buying of materials to gain a discount
D. Improved mix of materials used
Q135. An effective control is:
A. Practical without planning, and planning without control is pointless
B. Practical without planning, and planning with control is pointless
C. Not practical without planning, and planning without control is pointless
D. Not practical without planning, and planning with control is pointless
Q136. If the buffer stock level is too low, that may lead to
A. The increasing in holding cost
B. The running out of inventory
C. The higher average inventory
D. The higher maximum level of inventory
Q137. A management control system (MCS) is:
A. A possible course of action that might chable an organization to achieve its objectives
B. A collective term for the hardware and software used to drive a database system
C. A set up that measures and corrects the performance of activities of subordinates
order to make sure that the objectives of an organization are being met and the
associated plans are being carried out
D.A system that controls and maximum the profits of an organization
Q138. graph of q46 (bieu do)
 A. Total fixed costs fall after production reaches Q, but variable costs per unit
increase
B. Fixed costs are constant until production reaches Q after which fixed costs step up
to a higher level
C. Variable costs per unit are constant with output reaches Q after which all
production (from the first unit onwards) incurs higher variable cost per unit
D. Variable costs per unit are constant until output reaches Q after which
further production incurs higher variable cost per unit

Q139. Which of the following is the most useful for monitoring and controlling the costs
incurred by a freight transport organization?
A. Cost per tonne carried
B. Cost per kilometer traveled
C. Cost per driver hour
D. Cost per tonne-kilometer
Q140. A company determines its order quantity for a raw material by using the
Economic Order Quantity (EOQ) model.
What would be the effects on the E0Q and the total annual holding cost of an increase in
the cost of ordering a batch of raw material?
A. EOQ higher, Total annual holding cost lower
B. EOQ higher, Total annual holding cost higher
C. E0O lower, Total annual holding cost higher
D. E0Q lower, Total annual holding cost lower