Free CMA Exam Braindumps (page: 101)

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Exhibit



The budgeted total volume of 250,000 units s based upon Xerbert's aching a market share of 10%. Actual industry volume was 2.580.000 units. Xerbert's increased volume owing to improved market share is

  1. 100%
  2. 80%
  3. 20%
  4. 4%

Answer(s): C

Explanation:

Based on the revised industry volume. Herbert should have sold 258,000 units (2.580,000 x 10%). Because 260,000 were actually sold, the company increased its market share by 2,000, or 20% of the 10,000 (260,000 -- 250,000) increase.



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Exhibit





The variance of actual contribution margin from budgeted contribution margin attributable to sales price is?

  1. $115,000 unfaorable.
  2. $115,000 favorable
  3. S65.000 favorable.
  4. $65,000 uravorebIe.

Answer(s): D

Explanation:

The budgeted prices of Xenox and Xeon were $6 and $10 per unit, respective. Actual sales in units multiplied by the budgeted prices equals total sales of $2,080,000, Because actual sales were on, p $2.0 15,000. the variance of $65,000 is unfavorable (lower sales than budgeted).



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Exhibit


The variance of actual contribution margin from budgeted contribution attributable to unit variable cost changes is?

  1. $165,000 favorite
  2. $137,000 favorable
  3. $137,000 unfavorable
  4. Zero, because actual wit variable costs were the same as budgeted unit variable costs

Answer(s): D

Explanation:

The proper procedure is to calculate variable costs by multiplying actual units sold by the budgeted costs per unit. The budgeted costs of Xenox and Xeon were $3 and $7 50, respectively the actual costs (130 x $3 = $390 and 130 x $750 = $975) were identical to budgeted variable costs at the actual volume. Thus, the variance was zero



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Oradell Company sells is single product at a price of $60 per unit and incurs the following variable costs per unit of product


Oradell's annual fixed costs are $880,000, and Oradell is subject toe 30% income tax rate .A production and sales volume of 4.000 units of product per month would result in an annual after-tax income (loss) Oradell Comp of?

  1. $80000
  2. $(800.000)
  3. $56000
  4. $(560.000)

Answer(s): C

Explanation:

The income statement for a volume of 48.000 units (4.000 per month x 12 months) would I appear' as follows:



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