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A company absorbs production overhead using a direct labour hour rate. Data for the latest period are as follows:

What is the overhead absorption rate per direct labour hour? Give your answer to one decimal place.

A. 5.4

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A company uses full cost pricing. The unit costs for product Z are given below.

What price per unit should be charged in order to achieve a profit margin of 20%? Give your answer to the nearest cent.

A. $25

The following data are available for a company that produces and sells a single product.

The company's opening finished goods inventory was 2,500 units.

The fixed overhead absorption rate is $8.00 per unit.

The profit calculated using marginal costing is $16,000.

The profit calculated using absorption costing and valuing its inventory at standard cost is $22,400.

The company's closing finished goods inventory is:

A. 3,300 units

B. 1,700 units

C. 3,900 units

D. 8,900 units

Which of the following would NOT require taking into account the time value of money?

A. Deciding to make a long-term investment in a project on the basis of its payback period.

B. Selecting an investment project on the basis that it has a positive net present value (NPV).

C. Calculating the present value of a five-year annuity.

D. Taking a long-term investment decision on the basis of the project's internal rate of return (IRR).

The staffing policy for a supermarket is to have one cashier station open for every forecasted 20 customers per hour. Cashiers are hired by the hour as and when required, and do not perform any other duties. The cost of the cashiers in relation to the number of customers would be classified as which type of cost?

A. Stepped fixed cost

B. Variable cost

C. Semi-variable cost

D. Fixed cost

The following data relate to the latest period.

A statement is to be prepared that reconciles the difference between the flexible budget profit and the actual profit. Which TWO of the following will appear on this statement? (Choose two.)

A. A favourable labour rate variance.

B. A favourable sales volume contribution variance.

C. An adverse sales price variance.

D. An adverse labour efficiency variance.

E. An adverse material price variance.

Assume that a unit of output is the cost object. Which of the following statements is valid?

A. Royalties paid on per unit basis are an example of an indirect expense.

B. Materials consumed in the maintenance of machinery used to manufacture several different products are an example of a direct material cost.

C. The salaries of supervisors who oversee the manufacture of several different products are an example of a direct labour cost.

D. Rent paid for a factory in which several different products are produced is an example of an indirect expense.

A confectionery manufacturer is considering adding a new product to the current range. Forecast data for the product are as follows.

Incremental fixed costs attributable to the new product are forecast to be $24,000 each period.

The forecast sales volume of 180 units is insufficient to achieve the target profit of $10,000 each period.

Which of the following statements is correct?

A. The margin of safety is negative because the target profit will not be achieved from the forecast sales volume.

B. If the fixed cost is changed to $20,000 the sales volume required to break even will decrease.

C. If the forecast sales volume is changed to 190 units the sales volume required to achieve the target profit will decrease.

D. If the selling price is changed to $510 the sales volume required to achieve the target profit will increase.

According to CIMA's Code of Ethics, CIMA members should not allow bias, conflict of interest of the influence of other people to override their professional judgement. This is an example of:

A. objectivity.

B. professional behaviour.

C. integrity.

D. professional competence and due care.

A sales manager has analysed a sample of 350 sales transactions from the latest period. The manager wishes to investigate:

how many customers made their purchase online using the internet and how many purchased by telephone. how many were new customers and how many were placing repeat orders.

The following table shows the results of the analysis.

If the pattern of sales occurs next period, the probability of a particular sale being a repeat order placed online is closest to:

A. 0.11

B. 0.40

C. 0.16

D. 0.35