Free BA2 Exam Braindumps (page: 52)

The standard material content of 1 unit of PAJ is £200 (8Kg at £25 per Kg).

During Period 5, 1300 Kg of materials were purchased at a total cost of £35000 and were used to produce 170 units of PAJ.

What was the materials price variance for Period 5?

Which THREE of the following statements could explain why a favourable sales volume contribution variance has arisen?

Two rival furniture manufacturers have recently merged together. Before the merge each party had three outlets and one factory each. Now they have two factories, six stores with another 3 planned in the next year.

Previously, one company had operated with function cost centres, looking at costs incurred by each department whilst the other had chosen to look at costs per activity.

Whilst the companies were small this worked and costs were easy to manage and issues could be dealt with quickly and efficiently. Since then costs have gone out of control as the old systems no longer work for this

large, nationwide company.

What is a suitable type of cost centre to use now?

RJD Ltd is preparing the production cost budget for the forthcoming year and has found that there is a linear relationship between production volume and production costs.

They have found that a production volume of 1,600 units corresponds to production costs of £40000 and that a production volume of 3,200 units corresponds to production costs of £48,000.

What would be the production costs for a production volume of 4,000 units?