Question

1. Bristol Ltd settles their creditors’ accounts as follows: 25% in the month of purchase and 75% in the month following purchase. For the month of August their credit purchases totalled $32 000 and in September were $43 000. How much cash did Bristol Ltd pay to their creditors in the month of September? ？

   	a.	$32 000
   	b.	$24 000
   	c.	$43 000
   	d.	$34 750
   	e.	$40 250

1 points

Question 10

1. At the end of June, Chen and Li Pty Ltd reviewed its performance for the month and noted the following:

   Account	Budget	Actual
   Sales	$95,000	$87,000
   Operating expenses	$82,000	$78,000

   The respective variances of sales and Operating Expenses will be reported as

   	a.	$13,000 F and $9,000 F
   	b.	$8,000 F and $4,000 U
   	c.	$8,000 F and $4,000 F
   	d.	$8,000 U and $4,000 F
   	e.	$8,000 U and $4,000 U

1 points

Question 11

1. The break-even point is where:

   	a.	total sales = total variable costs
   	b.	total sales = fixed costs plus profit
   	c.	total sales = total costs
   	d.	total sales = total variable costs plus profit
   	e.	All of the options are correct

1 points

Question 12

1. The break-even point would not be affected by changes to:

   	a.	all of the options are correct
   	b.	number of units sold
   	c.	total fixed costs
   	d.	variable cost per unit
   	e.	sales price per unit

1 points

Question 13

1. The following information is available for product H57.

                Direct material costs — $48.00 per unit of product

               Costs of machining — $37.50 per machine hour

               Costs of packing — $12.50 per carton packed

               The firm applies 60% mark-up on costs.

                What is the total full cost of an order for 1000 units of product H57 which will use 65 machine hours and 45 cartons?

   	a.	$48 000.00
   	b.	$51 000.00
   	c.	None of the answers is correct
   	d.	$50 437.50
   	e.	$48 562.50

1 points

Question 14

1. Holland Ltd allocates overhead based on DLH and estimates its total overhead costs will be $140,000 for the coming year. It will use 28,000 direct labour hours and 14,000 machine hours during that same period.

   How much overhead will be charged to a job that used 15 Direct Labour Hours?

   	a.	$150
   	b.	$5
   	c.	Unable to be determined from the information given
   	d.	$420
   	e.	$75

1 points

Question 15

1. Which of the following statements concerned with the ARR and payback period methods is correct?

   	a.	Both methods are quite easy for managers to understand
   	b.	Both methods are simplistic and may be useful for a quick analysis to sort out projects for further analysis
   	c.	Both methods ignore the time value of money
   	d.	All of these statements are correct
   	e.	If two projects have the same ARR the one with the lowest payback period would be preferred

Answer 1

Q9
Answer is d. $34750
Explanation:
payment of Aug month purchase		24000
Payment of Sep month purchase		10,750
Total Payment in Sep			34,750
Q10
Answer is d. $8000 U and $4000 F
Explanation
Sales variance = Budgeted -Actual
		95000-87000 = 8000 U
Expense = Actual- Budgeted
	78000-82000 = 4000 F
Q11.
Answer is c. Total sales = Total cost
Q12.
Answer is b. Number of units sold
Explanation:
Break even units = Total fixed cost / (Selling price -Variable cost per unit)
Q13.
Answer is b. $51,000
Explanation:
Material (1000*48)		48000
machining cost (65*37.50)	2437.5
packing (45*12.50)		562.5
Total cost			51000
Q14.
Answer is e. $75.
Explanation:
Total overheads		140000
Divide: Total DLH		28000
OH rate per DLH		5
Multiply: Number of DLH used in Job	15
Total overheads applied in Job	75
Q15.
Answer is d. All of these statements are correct