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Refer to the exhibit.



RS operates a standard absorption costing system. The following data is available for the month of March.

The sales budget for the month of March was for 3,000 units to be sold giving sales revenue of $40,000.

The actual sales volume is

  1. 2400 units.

Answer(s): A



Refer to the exhibit.



Which is the correct journal entry required to record a favorable variable overhead expenditure variance in an integrated accounting system?

The correct journal entry required to record a favorable variable overhead expenditure
variance in an integrated accounting system is:

  1. A
  2. B
  3. C
  4. D

Answer(s): C



Feedforward control systems differ from feedback systems in that they _____________________.

  1. Analyse the adverse variance before implementing a solution.
  2. Predict issues before they arise and attempt to prevent them.
  3. Acknowledge adverse variances will occur and does nothing to prevent them.

Answer(s): B



Refer to the exhibit.


A company has the following budgeted sales for the next 6 month period:

Cash sales are 20% of the total and receive a cash discount of 5%. The remaining 80% of sales are on credit. 60% of credit customers pay within one month, the remaining 40% pay within two months.

The cash receipts for the month of July will be:

  1. $110,000
  2. $91,200
  3. $90,400
  4. $109,200

Answer(s): C






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