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Refer to the exhibit.



The wages analysis for the welding department of a manufacturing company is given below:

What is the direct labor cost for the welding department?

  1. $40,550
  2. $36,890
  3. $30,250
  4. $38,490

Answer(s): B



Refer to the Exhibit.


A company operates an absorption costing system. The management accounts show that fixed production overheads were over-absorbed in the period.

Which FOUR combinations could possibly have resulted in this situation?

  1. Combination A
  2. Combination B
  3. Combination C
  4. Combination D
  5. Combination E
  6. Combination F
  7. Combination G
  8. Combination H

Answer(s): C,D,E,F



The principal budget factor can be defined as:

  1. The factor which has the highest value in the budget
  2. The factor which limits the activities of the organisation
  3. The factor which is most likely to result in an adverse variance
  4. The factor which is least likely to change in the future

Answer(s): B



CORRECT TEXT

Apex Plc has budgeted to sell 8,000 units of A in the year. Opening inventory of A is estimated at 1,000 units and the company plans to reduce inventory levels of all products by 15%.

What will be the production budget (in units) for the year?

  1. 7850 units

Answer(s): A






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