Mgt Acc

4580 Words Apr 11th, 2013 19 Pages
AYB225 Management Accounting

Past examination questions, and additional practice questions

Questions 1-5 Standard absorption costing and variances (lectures 5 and 6)

Questions 6-12 AC/VC (lecture 7)

Questions 13-15 Weighted average process costing (lecture 8)
Questions 16-18 Service department allocation (lecture 9)
Questions 19-22 Joint cost allocation (lecture 9)

Available past exam questions exist for lectures 5-9 only. There are none available for lectures 10-11. Providing you with these questions in no way indicates or limits the type of questions on the final exam. You are advised in preparing for the final examination to work through all your lecture material, and through all the practice and
Budgeted total overhead at denominator capacity is \$45,900.
The following are the actual results of the firm for the month of October, 1997:
Labour cost (rate paid \$6.80 per hour) \$20,468
Actual variable overhead \$23,250
Actual fixed overhead \$22,760
Actual units produced 320 units
REQUIRED:
a) Calculate the labour rate and efficiency variances for the month. (2 marks) b) Calculate the overhead variances using the four-variance method. (4 marks) c) How many units is denominator capacity? (1 mark) d) What is the amount of budgeted fixed overhead at denominator capacity? (1 mark) e) Show the journal entries for: a. Actual overhead incurred b. Overhead applied to production (2 marks) f) What amount would be debited to WIP for overhead if: a. Standard direct costing had been used instead of absorption costing? b. Normal absorption costing had been used instead of standard absorption costing? (2 marks)

QUESTION 4

The Bluechip Corporation employs a standard costing system to cost its production of widgets. From notes scattered on the desk of the cost accountant, you are able to assemble the following pieces of data:

i) The total standard cost of each widget includes: Direct Materials (5 square feet of Y @ \$0.60/sq.foot) \$3.00 Direct Labour (4 hours @ \$2.00 per hour) \$8.00 ii) The total labour variance (LRV + LEV) to be explained is \$200