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F5 - Performance Management
Mr. Ghan Shyam Dubey
Name - _________________
Student ID - _____________
E-mail ID - ______________
Score: /10
ACCA F5 Performance Management
2. Which of the following statements about cost and management accounting are
true?
Budgeted information relating to two departments in a company for the next period is as
follows:
Individual direct labour employees within each department earn differing rates of pay,
according to their skills, grade and experience.
3. What is the most appropriate production overhead absorption rate for department
1?
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ACCA F5 Performance Management
4. What is the most appropriate production overhead absorption rate for department
2?
$ per unit
Direct materials 6.00
Direct labour 7.50
Variable overhead 2.50
Fixed overhead absorption rate 5.00
-----
21.00
Profit 9.00
-----
Selling price 30.00
-----
Budgeted production for the month was 5,000 units through the company managed to
produce 5,800 units, selling 5,200 of them and incurring fixed overhead costs of
$27,400.
6. The profit under the marginal costing method for the month is:
(a) $45,400
(b) $46,800
(c) $53,800
(d) $72,800
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ACCA F5 Performance Management
7. The profit under the absorption costing method for the month is:
(a) $45,200
(b) $45,400
(c) $46,800
(d) $48,400
It is estimated that in the next year, 325,000 orders will be processed, and that
the delivery vehicles will travel 1,495,000 km.
A customer has indicated that 138 orders, each of which will require a journey of
122 km for each order will be placed next year.
(a) $47,342
(b) $38,891
(c) $30,299
(d) $1,785
9. The directors of Wiltshire Ltd are considering the introduction of activity based
costing (ABC). A trainee manager has asked which of the following comments
about the calculation of overhead cost using ABC are not correct:
I. Each individual cost will have a unique, identifiable, cost driver
II. The volume of activity has no influence on cost
III. The overhead cost calculated using ABC will always be significantly different
from the overhead cost calculated using absorption costing
10. The budgeted overheads of Coleman Ltd for the next year have been analysed as
follows:
$000
Machine running costs 640
Purchase order processing costs 450
Production run set up costs 180
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ACCA F5 Performance Management
In the next year, it is anticipated that machine will run for 32,000 hours, 6,000
purchase orders will be processed and there will be 450 production runs.
Using Activity Based Costing, what is the overhead cost per unit of the product?
(a) $0.99
(b) $1.59
(c) $35.30
(d) $495.00
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