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CIMA Fundamentals of management accounting Sample Questions:
1. The standard labour content of one unit of 'BFC' is $35 (7 hours paid at $5 per hour).
During period 2, 600 hours were worked at a cost of $3,300 to produce 90 units of 'BFC'.
What was the direct labour total variance for Period 2?
A) $150 Favourable
B) $150 Adverse
C) $300 Adverse
D) $300 Favourable
2. Refer to the exhibit.
A company manufactures a single product, and relevant data is as follows:
Note. Overheads are assumed to be related to direct labor hours.
The actual results for the period were as follows:
What is the variable overhead efficiency variance?
A) £7,500 favorable
B) £6,500 favorable
C) £7,500 adverse
D) £6,500 adverse
3. Which type of budget would be the most suitable for a cash budget?
A) Incremental budget
B) Flexible budget
C) Rolling budget
D) Fixed budget
4. Refer to the exhibit.
T operates a process costing system. Data is available for Process A for the month of July.
Inputs for the month:
Normal losses are 15% of input and can be sold for $6 per kg. Actual output was 2,600 kg. There is no opening or closing work in progress for the period.
What is the value of the output from the process in the month?
A) $43,784
B) $46,538
C) $45,120
D) $49,291
5. Refer to the exhibit.
Which of the following journal entries are required to record the wages payable?
The journal entries required to record the wages payable are:
A) B
B) D
C) A
D) C
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: C | Question # 4 Answer: A | Question # 5 Answer: C |



