Online Access Free CIMAPRO19-P01-1 Practice Test

Which THREE of the following statements relating to fixed overhead variances are correct?

• A.The fixed overhead volume variance can be split into the fixed overhead efficiency variance and the fixed overhead capacity variance.
• B.In a marginal costing operating statement reconciling budgeted contribution to actual profit only the fixed overhead expenditure variance and the fixed overhead volume variance are shown.
• C.The total fixed overhead cost variance in an absorption costing system is the difference between budgeted fixed overhead and actual fixed overhead incurred.
• D.The total fixed overhead variance is made up of the fixed overhead expenditure variance, the fixed overhead efficiency variance and the fixed overhead capacity variance.
• E.The total fixed overhead cost variance in an absorption costing system is the amount of fixed overhead that has been under- or over-absorbed in the period.

A company makes a product using two materials, X and Y.
The standard materials required for one unit of the product are:

What is the materials yield variance?
Give your answer as a whole number.

A company has a budgeted contribution to sales (C/S) ratio of 30% and a budgeted operating profit margin of 20%. Budgeted sales were $100,000.
In month 2, actual production and sales volumes and all costs were as budgeted. The actual C/S ratio was 33% .
Which of the following statements, about the company's contribution and operating profit in month 2, is correct?

• A.Actual contribution was exactly 10% higher than budgeted contribution.
• B.Actual contribution was less than 10% higher than budgeted contribution.
• C.Actual operating profit was less than 10% higher than budgeted operating profit.
• D.Actual operating profit was more than 10% higher than budgeted operating profit.

EFG is a small business making raspberry jam to sell at local markets. It has recently been approached by a major supermarket to produce a special order for the supply of lemon curd.
Two of the ingredients required are sugar and preservatives, both of which are in inventory.
The sugar has a historic cost of $4 per kg and a replacement cost of $5. It is in regular use for the production of the raspberry jam.
The factory has switched to organic processes and the preservatives are no longer required.
The historic cost of the preservatives was $3 per kg and the replacement cost is $2.50 per kg.
The preservatives can be re-sold to a local competitor for $1 per kg if they are not used in this order.
Which TWO of the following should be included in determining the relevant cost of the special order?

• A.Preservatives at $2.50 per kg
• B.Sugar at $4 per kg
• C.Preservatives at $1 per kg
• D.Sugar at $5 per kg
• E.Preservatives at $3 per kg

A company produces and sells two products, product A and product B.
What are the total fixed costs when the weighted average contribution per unit is $5 and the breakeven points for product A and product B are 10,000 units and 5,000 units respectively?
Give your answer as a whole number (in 000's).