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CIMA BA2 – Fundamentals of Management Accounting Question Tutorial Sample Questions:

1. Which THREE of the following are parts of the master budget? (Choose three.)

A) Sales budget.
B) Cash flow budget.
C) Budgeted statement of profit or loss.
D) Finished goods inventory budget.
E) Administration overhead budget.
F) Budgeted statement of financial position.

2. 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) Variable cost
B) Fixed cost
C) Stepped fixed cost
D) Semi-variable cost

3. FILL BLANK
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.

4. FILL BLANK
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.

5. A company has two production departments and two service departments (Maintenance and Stores). The overhead costs of each of the departments are as follows.

The following equations represent the reapportionment of each of the service department overheads to the other.
M = 4,700 + 0.1S
S = 5,800 + 0.2M
Where M = total Maintenance overhead after reapportionment from Stores
S = total Stores overhead after reapportionment from Maintenance
60% of the total Maintenance overhead and 50% of the total Stores overhead are to be apportioned to Production Department 1.
The total production overhead for Production Department 1 after reapportionment of the service departments' overhead costs is closest to:

A) $75,500
B) $70,720
C) $71,672
D) $71,821

Solutions: