BA2 Exam Dumps : Fundamentals of Management Accounting

A company makes and sells a range of products. The standard details per unit for one of these products, product X, are as follows.

To meet sales demand, the company must obtain 2,000 units of product X next month. There is sufficient labour capacity to produce 1,500 of these units in-house during normal time. However, any production above this level would require overtime working which would be paid at a premium of 50%.

The company can buy as many units of product X as it wishes next month from an external supplier at a price of $120 per unit.

What is the total financial benefit to the company of purchasing the appropriate number of units from the external supplier rather than producing them in-house?

Refer to the exhibit.

Which is the correct journal entry required to record an adverse labour rate variance in an integrated accounting system?

The correct journal entry required to record an adverse labour rate variance in an integrated accounting system is:

Refer to the exhibit.

T operates a process costing system. Data is available for Process A for the month of July.

Inputs for the month:

Normal losses are 15% of input and can be sold for $6 per kg. Actual output was 2,600 kg. There is no opening or closing work in progress for the period.

What is the value of the output from the process in the month?