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CIMA Fundamentals of management accounting Sample Questions:

1. Refer to the exhibit.

The following details were recorded for product 'Moe' for period 2:
What was the direct labor efficiency variance?

A) £1,000 Adverse
B) £1,000 Favorable
C) £750 Favorable
D) £750 Adverse

2. In a company that manufactures many different products on the same production line, which TWO of the following would NOT be classified as indirect production costs? (Choose two.)

A) Salary paid to the factory manager.
B) Factory rent.
C) Commissions paid to the sales team.
D) Maintenance costs for the company's only production line.
E) Royalties paid to the designers of the products.

3. Apex Plc has budgeted to sell 8,000 units of A in the year. Opening inventory of A is estimated at 1,000 units and the company plans to reduce inventory levels of all products by 15%.
What will be the production budget (in units) for the year?

4. Refer to the exhibit.

A departmental budgetary control report for the latest period includes the following information.
The budgeted variable production cost per unit is

A) $17
B) $12
C) $16
D) $10

5. Refer to the exhibit.

The following standard cost information relates to the production department of BE Ltd.
The actual data for the month of March was as follows:

What is the direct labour efficiency variance (to the nearest whole number)?