Free BA2 Exam Braindumps (page: 55)

A company employs 28 production workers for 40 hours per week. The workers are paid $6 per hour during normal time and an overtime premium of 20%. It is anticipated that the employees will work at 95% efficiency.

Budgeted production for next week is 608 units and each unit requires 2 direct labour hours.

What is the direct labour cost budget for the week?

Budgets are produced:

(a) For planning purposes

(b) For control purposes
(c) To be published with the annual accounts

(d) To comply with international accounting standards

CORRECT TEXT

Refer to the exhibit.



A company has established that a particular cost item is semi-variable. Past records of costs at different levels of activity are as follows:

The fixed cost element for the cost item is:

The managing director of a small expanding company has a limited understanding of accounting and has asked you to explain the role of the management accountant in value
creation.

Which ONE of the following is NOT a primary role of the management accountant?