variance accounting PQ

MCQs just for you!

S
tandard costing and variance for the month was:
Philip Dunn sets you a standard costing and
analysis is heavily tested in the (a) £82,000 F
AAT Level 4 paper Financial variance analysis test – with answers below (b) £82,000 (A)
Performance and ICB Level 4 (c) £61,000 (A)
Management Accounting, and students (Q3) The capacity ratio for the month (d) £61,000 F
preparing for either F2 or F5 ACCA may was:
find this article useful. (a) 102.78% (Q10) The direct material price variance
The following series of MCQ’s will test (b) 101.67% for the month was:
your competence in this topical area. (c) 98.92% (a) £12,810 F
(d) 100% (b) £12,810 (A)
Case scenario . (c) £13,420 F
Sandsend Animal Feeds produce a (Q4) The activity or production volume (d) £13,420 (A)
standard product. Its budget for 2015 ratio for the month was:
includes the following information: (a) 102.78% (Q11) The total fixed overhead variance
• Budgeted production 144,000 tonnes (b) 97.30% for the month was:
or 12,000 tonnes per month. (c) 98.36% (a) £3,625 F
• Budgeted fixed overhead for the year (d) 101.67% (b) £3,625 (A)
£1,134,000. (c) £2,575 (A)
• Standard usage of raw material per (Q5) The total direct labour cost variance (d) £2,575 F
tonne of product 1.05 tonnes (allows for for the month was:
wastage). (a) £1,725 (A) (Q12) The fixed overhead expenditure
• Raw material cost per tonne delivered (b) £1,725 F variance for the month was:
£100. (c) £2,925 (A) ANSWERS (a) £1,575 F
• Standard hours per tonne 0.75. (d) £2,925 F 15. c (b) £1,575 (A)
• Standard rate of pay £8.00. 14. c (c) £1,000 F
(Q6) The direct labour efficiency variance 13. b (d) £1,000 (A)
Actual output and costs January 2015: for the month was: 12. c
• Output 12,200 tonnes, hours worked (a) £800 F 11. d (Q13) The fixed overhead volume
9,250 and cost of direct labour £74,925. (b) £800 (A) 10 c variance for the month was:
• Raw material tonnage used 13,420 and (c) £1,200 F 9. c (a) £2,625 F
cost of raw material used £1,328,580. (d) £1,200 (A) 8. d (b) £1,575 F
• Actual fixed overhead £93,500. 7. a (c) £1,575 (A)
(Q7) The direct labour rate variance for 6. b (d) £2,625 (A)
(Q1) The standard hours produced in the the month was: 5. a
month were: (a) £925 (A) 4. d (Q14) The fixed overhead capacity
(a) 9,000 (b) £925 F 3. a variance for the month was:
(b) 9,100 (c) £1,739 (A) 2d (a) £1,050 F
(c) 9,150 (d) £1,739 F 1.c (b) £1,050 (A)
(d) 9,250 (c) £2,625 F
(Q8) The total direct material cost (d) £2,625 (A)
(Q2) The efficiency ratio for the month variance for the month was:
was: (a) £60,580 F • Dr Philip (Q15) The fixed overhead efficiency
(a) 101.09% (b) £60,580 (A) E Dunn is a variance for the month was:
(b) 98.36% (c) £47,580 F freelance author (a) £1,575 (A)
(c) 97.29% (d) £47,580 (A) and assessor, (b) £1,575 F
(d) 98.92% Kaplan Distance (c) £1,050 (A)
(Q9) The direct material usage variance Learning (d) £1,050 F PQ

PQ Magazine August 2015 27