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This document provides answers to a management accounting pilot paper with 30 multiple choice questions. Key details include: - Question 4 calculates marginal costing profit as $27,000 - Question 13 calculates a sales volume variance of $10,000 adverse and fixed budget profit of $130,000 - Question 17 calculates variable production cost per unit as $0.96 and flexible budget allowance for 85% capacity as $13,680 - Question 19 calculates total overhead cost for product P as $128,500 - Question 22 calculates a labor efficiency variance of $5,000 adverse - Question 25 notes that answer C satisfies conditions in both month 1 and month 2

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Neel Kosto
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39 views

For More ACCA Study Materials, Tutor Support, Exam Tips Visit

This document provides answers to a management accounting pilot paper with 30 multiple choice questions. Key details include: - Question 4 calculates marginal costing profit as $27,000 - Question 13 calculates a sales volume variance of $10,000 adverse and fixed budget profit of $130,000 - Question 17 calculates variable production cost per unit as $0.96 and flexible budget allowance for 85% capacity as $13,680 - Question 19 calculates total overhead cost for product P as $128,500 - Question 22 calculates a labor efficiency variance of $5,000 adverse - Question 25 notes that answer C satisfies conditions in both month 1 and month 2

Uploaded by

Neel Kosto
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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FOUNDATIONS IN ACCOUNTANCY Paper FMA

Management Accounting Pilot Paper Answers


Section A
1C
2A
3C
(litres) Normal loss Actual loss Abnormal loss Abnormal gain
Process F 5,200 6,100 900
Process G 1,875 1,800 75
4B
Marginal costing profit:
(36,000 (2,000*(63,000/14,000))
$27,000
5C
6B
7B
Budgeted production (19,000 + 3,000 4,000) = 18,000 units
RM required for production (18,000*8) = 144,000 kg
RM purchases (144,000 + 53,000 50,000) = 147,000 kg
8D
9B
10 B
11 A
(36,000 + (200,000 x 12%))/200,000 = 30%
12 C
13 D
Sales volume variance:
(budgeted sales units actual sales units) * standard profit per unit = 10,000 adverse
Standard profit on actual sales: (actual sales units * std profit per unit) = $120,000
Fixed budget profit: (120,000 +10,000) = $130,000
14 A
15 B
16 C

23

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17 A
Variable production cost per unit = (15,120 11,280)/(10,000 6,000) = 3,840/4,000 = $096
Fixed cost = 11,280 (6,000 x 096) = $5,520
85% capacity = 8,500 units.
Flexible budget allowance for 8,500 units = $5,520 + (8,500 x 096) = $13,680
18 C
At 13% NPV should be 10
Using interpolation: 10% + (50/60)(10% 13%) = 125%
19 D
Direct cost $95,000
Proportion of cost centre X (46,000 + (010*30,000))*050 $24,500
Proportion of cost centre Y (30,000*03) $9,000
Total overhead cost for P $128,500
20 D
21 A
1,700 units*10 $17,000
300 units*04*10 $1,200
Opening work in progress value $1,710
Total value $19,910
22 A
(Actual hours Budgeted hours) * standard rate
(24,000 25,000)*5 = $5,000 adverse
23 A
24 B

25 C
Month 1: production >sales Absorption costing > marginal costing
Month 2: sales> production marginal costing profit> absorption costing profit
A and C satisfy month 1, C and D satisfy month 2; therefore C satisfies both
26 B
27 D
Cost per equivalent unit (480,000/10,000) = $48
Degree of completion= ((144,000/48)/4,000) = 75%
28 C
29 D
200 units*(3/60)*18 = $180
30 A
Actual cost $108,875
Absorbed cost $105,000
Under absorbed $3,875

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