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CIMA Fundamentals of management accounting Sample Questions:

1. Refer to the exhibit.

SP, a manufacturing company, uses a standard costing system. The standard variable production overhead cost is based on the following budgeted figures for the year:
During the month of September, 5,300 actual hours were worked and 5,600 standard hours of output were produced. Total variable production overhead costs in September were $8,600.
What was the total variable production overhead variance in September?

A) $200 favourable
B) $200 adverse
C) $650 adverse
D) $650 favourable

2. Refer to the exhibit.

Xey Ltd. has the following budgeted information for product T4 in July:
The actual results for July were as follows:

What is the total sales margin variance?

A) £35,000 favourable
B) £36,000 favourable
C) £36,000 adverse
D) £35,000 favourable

3. Refer to the exhibit.

A company issued its production budget based on an anticipated output of 2000 units. The actual output for the period was 1500 units. The details of the costs are shown below:
The budget volume variance was:

4.
Which of the following is TRUE regarding the figures given in the table?

A) Range = 70 years.
B) Median falls into the 30<x<40 group.
C) The youngest customer is 10 years old.
D) Modal group = 50<x<60.

5. Data for the latest period for a company which makes and sells a single product are as follows:

There were no budgeted or actual changes in inventories during the period.
The variable overhead expenditure variance for the period was:

A) $462 adverse.
B) $2,202 favourable.
C) $2,202 adverse.
D) $462 favourable.

Solutions: