Free BA2 Exam Braindumps (page: 47)

During the first financial period of this year a company posted profit of £340,000. However, their overheads were over absorbed by £20,000 in this period. As a result they tried to update their absorption rate for the current

period and as such they ended up under absorbing their overheads by £12,000.

They have also reported a sales volume increase of 550 when comparing this period to last.

You have been given the following information on unit cost/prices:

Selling price = £95 per unit

Variable production cost per unit = £15

Variable selling cost per unit = £18

Fixed overhead per unit = £8

They have asked you to reconcile their profit between periods.

Based on the information you have been given, what is their profit for the current period?

Which of the following is not a relevant cost?

A manufacturing company uses an absorption based costing system. At the start of the period they planned to make 30,000 units at a selling price of £900 per unit

Fixed overheads were expected to be £900,000. The variable cost per unit is £300.

At the end of the period actual overheads were £858,000, and 33,000 units were produced, of which 32,000 were sold.

Which of the following statements are TRUE? Select ALL that apply.

Refer to the exhibit.



A company budgeted to provide 700 units of service last period for a budgeted variable overhead cost of $29,400. During the period a total of 790 units of service were provided and the variable overhead cost incurred was $29,660.

For effective control of variable overhead cost which two figures should be compared in the budgetary control statement?