F5 ACCA KTQT 2 HVTC

A new inventory items has been introduced by a business. The following data has been tabulated to enable inventory control levels to be calculated: Maximum Average Minimum Lead time (days) 20 18 16 Demand per day (kg) 300 275 250 The economic order quantity (EOQ) of the new inventory items is 7,000 kg, and the re-order level is 6,000 kg. What is the minimum inventory control level for the new inventory item?

• A. 1,050

• B. 2,000

• C. 2,500

• D. 3,000

At 31 December 20x1 an organisation had 5,400 employees. During the year of 20x1, there were 750 left the organisation, although the management had decided that only 600 needed replacing and had recruited accordingly. What was the labour turnover rate for the year to 31 December 20X1 (to 2 decimal places) ?

• A. 10.96%

• B. 11.11%

• C. 11.27%

• D. 13.89%

A firm recorded a profit of $50,000 under absorption costing when inventory increased from 1,000 units at the start of the period to 1,400 units at the end of the period. The fixed production overhead absorption rate for the period would be $12 per unit. MC profit = ?

• A. $54,800

• B. $50,000

• C. $45,200

• D. None of the above is correct

The overhead absorption rate for product T is $5 per machine hour. Each unit of T requires 2 machine hours. Inventories of product T last period were: - Opening inventory: 2,700 units - Closing inventory: 2,400 units Compared with the marginal costing profit for the period, the absorption costing profit for product T will be which of the following?

• A. $1,000 higher

• B. $1,000 lower

• C. $3,000 higher

• D. $3,000 lower

The following information relates to a management consultancy organisation: Salary cost per hour for senior consultants: $40 Salary cost per hour for junior consultants: $25 Overhead absorption rate per hour applied to all hours: $20 The organisation adds 40% margin to total cost to arrive at the final fee to be charged to a client. Assignment number 789 took 54 hours of a senior consultant's time and 110 hours of junior consultants' time. What is the final fee to be charged for Assignment 789?

• A. $6,874

• B. $10,696

• C. $11,466

• D. $13,650

A company operates a continuous process into which 3,000 units of material costing $9,000 was input in a period. Conversion costs for this period were $11,970 and losses, which have a scrap value of $1.50, are expected at a rate of 10% of input. There were no opening or closing inventories and output for the period was 2,800 units. What was the output valuation?

• A. $20,271

• B. $20,520

• C. $20,970

• D. $21,280

The standard direct material cost for a product is $50 per unit (12·5 kg at $4 per kg). Last month the actual amount paid for 45,600 kg of material purchased and used was $173,280 and the direct material usage variance was $15,200 adverse. What was the direct material price variance last month?

• A. $8,800 Adverse

• B. $8,800 Favourable

• C. $9,120 Adverse

• D. $9,120 Favourable

The statement belows is true or false? "A standard cost is a predetermined estimated unit cost, used for inventory valuation and control"

• A. True

• B. False

Strategy is the aim or goal of an organisation.

• A. True

• B. False

Flexible budgets are normally prepared on a marginal cost basis. True or false?

• A. True

• B. False