ACCA Paper F2 Management Accounting June 2012
Revision Mock – Answers To gain maximum benefit, do not refer to these answers until you have completed the revision mock questions and submitted them for marking.
ACCA F2: MANAGEMENT ACCOUNTING
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REVISION MOCK ANSWERS
1
B – FALSE The definition given is that of a flexed budget.
2
D
3
C Economic order quantity
=
2C OD CH
Economic order quantity
=
2 x $10 × 80,000 units 0.90
Economic order quantity
=
1,333 units
4
B
5
D (65,800 + 82,600 + 60,100)/3 = 69,500 82,600 – 69,500 = 13,100 units
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C High level = number of units: 48
Total cost $7,100
Low level = number of units: 23
Total cost $5, 200
Difference = 25 units
Difference in costs $1,900
Therefore variable cost per unit = $1,900 ÷ 25 units = $76 Fixed costs = $7100 – ($76 × 48 units) = $3,452
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D
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A
9
A
10
B
11
C
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ACCA F2: MANAGEMENT ACCOUNTING
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A Fixed production overhead capacity variance = Budgeted hours worked
25,000
Less: actual hours worked
(24,000) –––––– 1,000 –––––– × standard fixed production overhead cost per hour $5 = $5,000 By only working 24,000 hours, overheads would be under-absorbed – an adverse effect.
13
D
14
A Overheads absorbed for the period
= $4.50 × 3,850 labour hours = $17,325
Overheads incurred for the period
= $18,225
Total overheads under-absorbed
= $900
15
C
16
D
17
D
18
C
19
B
20
A
21
C EOQ = √ ((2 × $30 × (5,000 × 4))/0.192) = 2,500 units
22
D
23
D
24
A Contribution per unit = $35 – ($8 + $8.50 + $3.50) = $15
4
Total contribution = $15 × 6,100 units sold
$91,500
Less = Fixed costs
($30,000)
Marginal profit
$61,500 KAPLAN PUBLISHING
REVISION MOCK ANSWERS
25
26
B Marginal costing profit
$61,500
Add: OAR included in closing stock $4 × 400 units
$1,600
Absorption profit for the month
$63,100
VC per unit = (13,900 – 10,100)/(3,000 – 2,000) = $3.80 FC in total = 10,100 – (2,000 × 3.80) = $2,500 Total cost for 3,750 units = ($2,500 × 1.05) + (3,750 × $3.80) = $16,875
27
B
28
C 10 + [20000/(20000- -30000)] × (20–10) = 14%
29
B Laspeyre price index ∑(current year price × base year quantity)/∑(base year price × base year quantity) × 100 [(55×150) + (80×250) + (82×275)]/[(50×150) + (70×250) + (75×275)] × 100 = 111
30
A Paasche quantity index ∑(current year quantity × current year price)/∑(base year quantity × current year price) × 100 [(175×55) + (300×80) + (325×82)]/[(150×55) + (250×80) + (275×82)] × 100 = 119
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Fully completed units Partially completed 50 units × 60% completion Total
32
300 units 30 units 330 units
B Normal output = 12,000 – 10% × 12,000
10,800
Actual Output
11,050
Abnormal gain
250 kgs
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ACCA F2: MANAGEMENT ACCOUNTING
33
B Average cost per kg
=
(48,000 + 30,000 + 42,000) – (1,200 × 1) 12,000 – 1,200
= $11 per kg
34
C T0
($100,000)
T1–T5
Revenue
$7,000 × 12 × 3.605
$302,820
T1–T5
Cost
$17,750 × 3.605
($63,989)
T5
Residual value
$20,000 × 0.567
$11,340 $150,171
35
D Process 1 12,000
Material input (litres) Normal loss
Process 2 12,000
240
600
Expected output
11,760
11,400
Actual output
11,550
11,450
(210)
50
Abnormal (loss) / gain
36 Statement of Equivalent Units Material
Finished Goods Closing WIP
Conversion
Units
Degree of completion
Equivalent Units
4,500
100%
4,500
100%
4,500
500
100%
500
75%
375
Total EU Total cost Cost per EU Therefore value of closing WIP
Degree of completion
Equivalent Units
5,000
4,875
$14,500
$24,375
$2.90
$5.00
= 500 units × $2.90 + 375 equivalent units × $5.00 = $3,325
37
C Cluster sampling is similar to multi-stage sampling but the final step is to sample every item in the final sub-division.
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REVISION MOCK ANSWERS
38
D The difference in profit is due to fixed overheads included in inventory valuation. The profit is higher under absorption costing indicating that inventory has increased. Increase in inventory (value) = $8,000 Increase in inventory (units) = 8,000 ÷ 4 = 2,000 units Production = sales + increase in inventory = 12,000 + 2,000 = 14,000
39
C
40
A $2,000,000/$4,000,000 × ($5,000,000 – $4,000,000) = $500,000
41
Total sales value of the units produced = (14,000 × 10) + (15,000 × 14) = $350,000 Production cost apportioned to Beta = $850,230/$350,000 × (15,000 × 14) = $510,138 Closing inventory of Beta = 15,000 – 12,000 = 3,000 units Value of closing inventory = $510,138/15,000 × 3,000 = $102,028
42
C A service industry is an industry not involved in agriculture, mining, construction or manufacturing.
43
B Overheads incurred Over-absorption
$2,375
Therefore overheads absorbed OAR =
$74,375
$74,375 = $4.25 17,500
Budgeted hours =
44
$72,000
68,000 = 16,000 hours 4.25
48,000 units to produce + increase in stocks of 1,500 units = 49,500 units 49,500 units @ 2kgs per unit = 99,000 kgs Add increase in stocks of raw materials = 1,750 kgs Total material purchases budget 100,750 kgs
45
B The number of labour hours used to produce 5,000 units is 9,550, and these have cost $52,525. If we had paid the standard cost of $6 an hour, this would have cost $57,300, which gives us a favourable labour rate variance of $4,775.
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ACCA F2: MANAGEMENT ACCOUNTING
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C We should have used 10,000 hours to produce 5,000 units. Instead, we have only used 9,950 hours. This is a favourable hour saving of 450 hours, which at the standard hourly rate of $6, gives a favourable labour efficiency rate of $2,700.
47
B
48
A OAR = $4.00 per labour hour Expenditure Variance = $64,000 – $62,500 = $1,500 (favourable) Capacity Variance = (16,000 hours – 15,000 hours) × $4.00 / hour = $4,000 (adverse) The total of these two variances is $2,500 (adverse) OR Actual overheads = $62,500 Absorbed overhead = 15,000 × 4 = $60,000 Overhead under-absorbed = $2,500
49
A
50
B
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