Feedback - MOCKP1B2

Feedback - MOCKP1B2.
1B2
INTERNATIONAL PROFESSIONAL FINANCIAL CAREERS ACADEMY PVT LTD
MOCK TEST RESULT ANALYSYS

PART 1 CMA: Performance Management, Sec B - II
-----------------------------------------
Student name: RASHMI MAN
Level A : Easy
LEvel B : Moderate
LEvel C : Tough
**********************************************************************
Question # 1
Hersh company uses a performance reporting system that reflect's the
company's decentralization of decision making. The departmental
performance report shows 1 line of data for each subordinate who
reports to the group vice-president. The data presented show the
actual costs incurred during the period, the budgeted costs, and all
variances from budget for that subordinate's department. The Hersh
company is using a type of system called:
A. Cost-benfit accounting
B. Flexible budgeting.
C. Program budgeting
D. Responsibilty accounting.
You have answered : B
This is a Level A question
WRONG! Correct choice: D This is the defination of responsibility accounting.

No of correct respondees to this question : 29 out of 45
**********************************************************************
Question # 2
Segmented income statements are most meaningful to managers when

they are prepared
A. On an absorption cost basis.
B. On a cost behavior basis.
C. In a single step format.
D. In a multiple step format.
You have answered : A
WRONG! Correct choice: B This shows variable and fixed costs with a segment
contribution
margin.

**********************************************************************
Question # 3
The segment margin of the Wire Division of Lerner Corporation would
Page 1
Feedback - MOCKP1B2.1B2
not include:
A. Fixed selling expenses of the Wire Division.
B. Variable selling expenses of the Wire Division.
C. The Wire division's fare share of the salary of Lerner
Corporation's president.
D. Variable manufacturing costs of the Wire Division.
You have answered : C
This is a Level B question
CORRECT The segment margin includes only directly tracable and controllable
segment data. Allocation of corporate or other common expenses is not
an element of segment margin.
**********************************************************************
Question # 4
Most firms use return on investment (ROI) to evaluate the performance

of investment center managers. If top managment wishes, division
managers to utilize all assets with regard to financing, the
denominator in the ROI calculation will be:
A. Total assets available.

B. Shareholder's equity.
C. Working capital.
D. Working capital plus other assets.
You have answered : D

WRONG! Correct choice: A Use of total assets avalable does not take into
consideration how
those assets have been contributed. Shareholders
equity, working
capital, and working capital plus other assets are
categories of
assets "contributed" by differnt financing
arrangements.
**********************************************************************
Question # 5
Residual income is a better measure for performance evaluation of an

investment center manager than return on investment because:
A. The problems associated with measuring the asset base are
eliminated.
B. Desirable investment decisions will not be neglected by high return
divisions.
C. Only the gross book value of assets needs to be calculated.
D. Returns do not increase as assets are depreciated.

CORRECT An investment that has a return that is lower than the average return
for a division will lower the ROI for that division. Therefore, the
division will tend to reject the investment even when the investment
Page 2
has an acceptable return for the company as a whole.
**********************************************************************
Question # 6
If a manufacturing company uses responsibility accounting, which one
of the following items is least likely to appear in a performance
report for a manager for an assembly line?
A. Materials.
B. Repairs and maintenance.
C. Direct labor.
D. Depreciation on equipment.

CORRECT This is something the assembly line manager would not be able to
control. He may make recommendations for capital expenditures, but
he would not be able to authorize them.
**********************************************************************
Question # 7
A controllable expense
A. Is an expected future expense which will be different under various

alternatives.
B. Is an expense whose actual amount will not normally differ from the
standard (budget).
C. Is one which is directly influenced at given level of managerial
authority within a given time period.
D. Is an expense which will remain semi-variable in total over the
relevant range in a given time period.

CORRECT Option C is the defination of a controllable expense.

**********************************************************************
Question # 8
The following is a summarized income statement of Carr Co.'s profit

center no. 43 for March:
Contribution Margin $70,000
Period Expenses:
Manager's Salary $20,000
Facility Depreciation $8,000
Corporate Expense
Allocation $5,000 $33,000
__________ ________
Profit Center Income $37,000
Which of the following amounts would most likely be subject to the

control of the profit center's manager?
Page 3
A. $70,000
B. $50,000
C. $37,000
D. $33,000

This is a Level C question
WRONG! Correct choice: A Managers of profit centers can contorl revenues and
direct expenses of
their deparments. They cannot control their own
salaries,
depreciation of the fixed assets assigned to their
departments or
their allocation of corporate expense. Such costs are
not controlled
at the depratment level.
**********************************************************************
Question # 9
Derf company applies overhead on the basis of direct labor hours. Two
direct labor hours are required for each product unit. Planned
production for the period was set at 9000 units. Manufacturing
overhead is budgeted at $135,000 for the period, of which 20% of this
cost is fixed. The 17,200 hours working during the period resulted in
production of 8500 units. Variable manufacturing overhead cost
incurred was $108,500 and fixed manufacturing overhead cost incurred
was $28,000. Derf company uses a four variance method for analyzing
manufacturing overhead.
The variable overhead spending variance for the period is:
A. $5300 Unfavorable.
B. $1200 Unfavorable.
C. $6300 Unfavorable.
D. $6500 Unfavorable.

CORRECT $135,000 OH x .2=27,000 FOH

27,000/9000 units = $3 per unit
135,000-27,000 = 108,000 VOH
108,000/9000 = $12 per unit

$12/2 DLH per unit = $6 per hour.
Variable OH spending variance:
Actual VOH 108,500
Flex. budget(17,200 DL
hours x $6) 103,200
___________
Unfavorable 5300
**********************************************************************
Page 4
Question # 10
The variable OH efficiency (quantity) variance for the period is:
A. $5300 Unfavorable.
B. $1200 Unfavorable.
C. $1500 Unfavorable.
D. $6500 Unfavorable.
CORRECT Variable OH efficiency variance:

Flex budget (17,200 DL
hours x $6) 103,200
Flexbudget (8500 units
x$12) 102,000
_________
Unfavorable 1200
**********************************************************************
Question # 11
The fixed OH budget (spending) variance for the period is:

A. $6300 unfavorable.
B. $2500 unfaborable.
C. $1500 unfavorable.
D. $1000 unfavorable.
CORRECT Fixed OH budget variance:

Actual 28000
Budget 27000
_______
Page 5
Unfavorable 1000
**********************************************************************
Question # 12
The fixed overhead volume (denominator) variance for the period is:
A. $750 Unfavorable
B. $2500 Unfavorable
C. $1500 Unfavorable
D. $1000 Unfavorable
CORRECT Fixed OH volume variance budget: 27000
Applied (8500 units x $3): 25500
_______
Unfavorable 1500
**********************************************************************
Question # 13
Chemking uses a standard costing system in the manufacture of its

single product. The 35,000 units of raw material in inventory were
purchased for $105,000, and 2 units of raw materials are required to
produce 1 unit of final product. In November, the company poduced
12,000 units of product, which was as budgted. The standard allowed
for material was $60,000, and there was an unfavorable quantity
variance of $2,500.
Chemking's standard price for one unit of material is:
a. $2.00
b. $2.50
c. $3.00
d. $5.00

CORRECT Given that the company produced 12,000 units with a total standard
cost for materials of $60,000, the standard cost must be $5.00
($60,000/12000 units) per unit of finished goods. Because each unit
of product requires two units of raw materials, the standard unit cost
for raw materials must be $2.50.
Page 6
**********************************************************************
Question # 14
variance of $2,500
The units of materials used to produce November output totaled:
a. 12,000 units
b. 12,500 units
c. 23,000 units
d. 25,000 units

CORRECT The company produced 12,000 units of output, each of which required
two units of raw materials. Thus, the standard input allowed for raw
materials was 24,000 units at a standard cost of $2.50 each. An
unfavorable quantity variance signifies that the actual quantity used
was greater than the standard input allowed. The materials quantity
variance equals the difference between actual and standard quantities,
times the standard price per unit. Consequently, since 1,000
(2,500U/$2.50) additional unites were used, the actual total quantity
must have been 25,000 units (24,000 standard+1,000).
**********************************************************************
Question # 15

variance of $2,500
The material price variance for the units used in November was:
a. $2,500 unfavourable
b. $11,000 unfavourable
c. $12,500 unfavourable
d. $3,500 unfavourable

CORRECT The price variance equals actual quantity times the difference between
the actual and standard prices. Actual usage and the standard price
were $25,000 units and $2.50, respectively. Actual price was $3.00
($105,000 total cost/35000 units purchased). Consequently, the
materials price variance is $12,500 unfavorable [($3.00-$2.50) x
25,000 units].
Page 7
**********************************************************************
Question # 16
Under a standard cost system, labor price variances are usually not
attributable to:
a. Labor rate predictions

b. The use of a single average standard rate
c. Union contracts approved before the budgeting cycle
d. The assignment of different skill levls of workers than planned
CORRECT If a new labor contract has been signed prior to the budgeting cycle,
the new labor rates should have been incorporated into the budget.
Therefore, this is not an explanation of a labor price variance.
**********************************************************************
Question # 17
A company set the total budgeted direct labor cost for the month at
$75,000 for producing 5,000 units. The following standard cost, stated
in term,s of direct labor hours (DLH), was used to develop the budget
for the direct labor cost:
1.25 DLH x $12.00/DLH = $15.00/units produced
The actual operating results for the month were as follows:
Actual units produced 5,200

Actual direct lab hrs worked 6,600
Actual direct labor cost $77,220
The direct labor efficiency variance for the month would be:
a. $4,200 U
b. $3,000 U
c. $2,220 U
d. $1,200 U

CORRECT Standard hours for the level of production = 5200 units x 1.25 hours /
unit = 6500 hours
Actual number of hours = 6,600

Standard price = $ 12 per direct labor hour
Direct labor efficiency variance = (6500-6600) * $12 = -1200

**********************************************************************
Page 8
Question # 18
Price variances and efficiency variances can be key to the performance
measurement within a company. In evaluating performance, a material
eficiency variance can be caused by all of the following except the:
a. Performance of the workers using the material

b. Actions of the purchasing department
c. Design of the product
d. Sales volume of the product
CORRECT The actual sales volume of the product will not impact the materials
efficiency variance. The difference between sales and production does
not affect the comparison of how much material should have been used
in the production and how much actually was used.
**********************************************************************
Question # 19
Division Z of a company produces a component that it currently sells

to outside customers for $20 per unit. At its current level of
production, which is 60% of capacity, Division Z's fixed cost of
producing this component is $5 per unit and its variable cost is $12
per unit. Division Y of the same company would like to purchase this
component from Division Z for $10. Division Z has enough excess
capacity to fill Division Y's requirements. The managers of both
divisions are compensated based upon reported profits. Which of the
following transfer prices will maximize total company profits and be
most equitable to the managers of Division Y and Division Z?
A. $12 per unit.

B. $18 per unit.
C. $20 per unit.
D. $22 per unit.

WRONG! Correct choice: B A unit price of $18 is less than Division Y's cost of
purchase from an
outside supplier but exceeds Division Z's production
cost.
Accordingly, both Y and Z benefit.
**********************************************************************
Question # 20
A company has two divisions, A and B, each operated as a profit
center. A charges B $35 per unit for each unit transferred to B.
Other data follow:

A's variable cost per unit $30
A's fixed costs $10,000
A's annual sales to B 5,000 units
A's sales to outsiders 50,000 units
Page 9
A is planning to raise its transfer price to $50 per unit. Division B
can purchase units at $40 each from outsiders, but doing so would idle
A's facilities now committed to producing units for B. Division A
cannot increase its sales to outsiders. From the perspective of the
company as a whole, from whom Division B acquire the units, assuming
B's market is uneffected?
A. Outside vendors.
B. Division A, but only at the variable cost per unit.
C. Division A, but only until fixed costs are covered, then from
outside vendors.
D. Division A, despite the increased transfer price.
WRONG! Correct choice: D Opportunity costs are $0 because A's facilities

would be idle if B
did not purchase from A. Assuming fixed costs are not
affected by the
decision, the intracompany sale is preferable from the
company's
perspective because A's $30 variable unit cost is less
than the
outside vendor's price of $40.
**********************************************************************
Question # 21
The Eastern division sells goods internally to the Western division of
the same company. The quoted external price in industry publications
from a supplier near Eastern is $200 per ton plus transportation. It
costs $20 per ton to transport the goods to Western. Eastern's actual
market cost per ton to buy the direct materials to make the
transferred product is $100. Actual per ton direct labor is $50.
Other actual costs of storage and handling are $40. The company
president selects a $220 transfer price. This is an example of:
A. Market-based transfer pricing.

B. Cost-based transfer pricing.
C. Negotiated transfer pricing.
D. Cost plus 20% transfer pricing.
CORRECT Because the $220 transfer price selected is based on quoted external
price (market), it is an example of market-based transfer pricing.
**********************************************************************
Question # 22
A company's flexible budget shows an expected variable delivery

expense of $160,000 when sales are 50,000 units. If sales total
52,000 units, and the acutal delivery expenses is $163,000, what will
be the given sales variance?
A. $3,000 unfavorable.
Page 10
B. $3,400 unfovorable.
C. $3,000 favorable.
D. $3,400 favorable.
WRONG! Correct choice: D The variable delivery expense should total $166,400
given sales of
52,000 units ($160,000/50,000 units = $3.20 per unit).
Thus the
variance is $3400 ($166,400-$163,000). It is
favorable since the
actual cost is less than that budgeted.
**********************************************************************
Question # 23
If overhead is applied on the basis of units of output, the variable

overhead efficiency variance will be:
A. Zero
B. Favorable, if output exceeds the budgeted level.
C. Unfavorable, if output is less than the budgeted level.
D. A function of the direct labor efficiency variance.

WRONG! Correct choice: A The variable overhead efficiency variance equals the
product of the
variable overhead application rate and the difference
between the
standard input for the actual output and the acutal
input. Hence the
variance will be zero if variable overhead is applied
on the basis of
units of output because the difference between actual
and standard
input cannot be recognized.
**********************************************************************
Question # 24
Water Control Inc. manufactures water pumps and uses a standard cost
system. The standard factory overhead costs per water pump are based
on direct labor hours and are as follows:
Variable overhead (4 hours at $8/hour) $32
Fixed overhead (4 hours at $5*/hour) 20
_______
Total overhead cost per unit 52
_______
*Based on the capacity of 100,000 direct labor hours per month.
The following additional information is available for the month of
November:
- 22,000 pumps were produced although 25,000 had been scheduled for
production.
- 94,000 direct labor hours were worked at a total cost of $940,000.
Page 11
- The standard direct labor rate is $9 per hour.
- The stand direct labor time per unit is 4 hours.
- Variable overhead costs were $740,000.
- Fixed overhead costs were $540,000.
The fixed overhead spending variance for November was:
A. $40,000 unfavorable
B. $70,000 unfavorable
C. $460,000 unfavorable
D. $240,000 unfavorable
CORRECT The fixed overhead spending(budget) variance is the difference between

actual and budgeted fixed factory overhead. Actual fixed overhead was
$540,000. Budgeted fixed overhead was $5 per hour based on a
capacity of 100,000 direct labor hours per month, or $500,000.
Because these costs are fixed, the budgeted fixed overhead is the same
at any level of production. Hence, the variance is $40,000
unfavorable ($540,000-$500,000)
**********************************************************************
Question # 25

_______
_______
November:
production.
The variable overhead spending variance for November was:
A. $60,000 favorable.
B. $12,000 favorable.
C. $48,000 unfavorable.
D. $40,000 unfavorable.

CORRECT The variable overhead spending variance is the difference between
actual variable overhead and the variable overhead based on the
standard rate and the actual activity level. Thus, the variable
Page 12
overhead spending variance was $12,000 favorable [$740,000 actual cost
- ($8 standard rate x 94,000 actual hours]. Because actual is less
than standard, the variance was favorable.
**********************************************************************
Question # 26
_______
_______
November:
production.
The variable overhead efficiency variance for November was:
B. $60,000 favorable
CORRECT The variable overhead efficiency variance equals the standard price
($8 an hour) times the difference between the actual hours and the
standard hours allowed for the actual output. Thus, the variance is
$48,000 {$8 x [94,000 actual hours - (4 standard hours per unit x
22,000 units produced)}]. The variance is unfavorable because actual
hours exceeded standard hours.
**********************************************************************
Question # 27
_______
_______
Page 13
November:
production.
The direct labor price variance for November was:
B. $94,000 unfavoarble
C. $60,000 favorable

CORRECT The direct labor price variance equals actual labor hours times the
difference between standard and actual labor rates. The actual labor
cost was $940,000 for 94,000 hours, or $10 per hour. The standard
rate was $9 per hour. Thus the variance is $94,000 [94,000 hours x
($10-$9)]. The variance is unfavorable because the actual rate paid
was higher than the standard rate.
**********************************************************************
Question # 28

_______
_______
November:
production.
The direct labor efficiency variance for November was:
A. $108,000 favorable
B. $120,000 favorable
Page 14
CORRECT The direct labor efficiency variance equals the standard rate times
the difference between actual and standard hours. Hence, the variance
is $54,000 {$9 x [94,000 hours - (4 standard hours per unit x 22,000
units)]}. The variance is unfavorable because the actual hours
exceeded the standard hours.

**********************************************************************
Question # 29
A difference between standard costs used for cost control and budgeted
costs
A. Can exist because standard cost must be determined after the
budget is completed.
B. Can exist because standard costs represent what costs should be,
whereas budgeted costs represent expected acutal costs.
C. Can exist because budgeted costs are historical costs, whereas
standard costs are based on engineering studies.
D. Cannot exist because they should be the same amounts.

CORRECT Standard costs are predetermined attainable unit costs. Standard cost
systems isolate deviations (variances) of actual from expected costs.
One advantage of standard costs is that they facilitate flexible
budgeting. Accordingly, standard and budgeted costs should not differ
when standards are currently attainable. However, in practice,
budgeted (estimated actual) costs may differ from standard costs when
operating conditions are not expected to reflect those anticipated
when the standards were developed.
**********************************************************************
Question # 30
Arrow industries employs a standard cost system in which direct

materials inventory is carried at standard cost. Arrow has
established the following standards for the prime costs of one unit of
product.
Standard Standard Standard

Quality Price Cost
_________ _________ __________
Direct
Materials 8 pounds $1.80/pound $14.40/pound
Direct
Labor 0.25 hour 8.00 per hour 2.00
__________
$16.40
==========
During November, Arrow purchased 160,000 pounds of direct materials
at a total cost of $304,000. The total factory wages for November
were $42,000, 90% of which were for direct labor. Arrow manufactured
19,000 units of product during November using 142,500 pounds of direct
materials and 5,000 direct labor hours.
The direct materials purchase price variance for November is:
Page 15
A. $16,000 favorable
D. $14,250 unfavoarble

CORRECT The direct materials price variance equals the actual quantity
purchased times the difference between the actual and standard unit
costs. The standard units cost for direct materials is $1.80 per
pound. The actual cost for 160,000 pounds was $304,000, or $1.90 per
pound. The variance is unfavorable because the actual price exceeded
the standard price. Thus, the variance is $16,000 ($10 x 160,000
lbs.)

**********************************************************************
Question # 31

product.
Quality Price Cost
_________ _________ __________
Direct
Direct
__________
$16.40
==========

The direct materials usage (quantity) variance for November is:
B. $1,100 favorable
D. $17,100 favorable
CORRECT The direct materials quantity variance equals the standard price
($1.80 per pound) times the difference between the actual and standard
quantities. The actual quantity used was 142,500 pounds. The
standard quantity is 8 pounds per unit of product. Given that 19,000
untis were produced, the standard quantity for the actual output was
152,000 pounds (8 lbs. x 19,000 units). Hence the direct materials
quantity variance is $17,100 [$1.80 x (152,000-142,500)]. Since the
actual quanity used was less than the standard quantity, the variance
Page 16
is favorable.
**********************************************************************
Question # 32
product.
Quality Price Cost
_________ _________ __________
Direct
Direct
__________
$16.40
==========
The direct labor price(rate) variance for November is:

A. $2,200 favorable
D. $2,090 favorable
CORRECT The direct labor rate variance equals the actual quantity of labor
used times the difference between the actual and standard prices for
labor. The actual total price of labor was $42,000, 90% of which was
for direct labor. Thus, the price of direct labor was $37,800. A
total of 5,000 hours of direct labor was worked. Thus, the actual
hoursly rate was $7.56 ($37,800/5,000 hours), and the variance is
$2,200 [5000 hours x ($8.00-7.56)]. The actual rate was less then the
standard, so the variance is favorable.

**********************************************************************
Question # 33

product.
Quality Price Cost
_________ _________ __________
Direct
Page 17
Direct
__________
$16.40
==========
The direct labor usage (efficiency) variance for November is:
A. $2,200 favorable
B. $2,000 favorable
CORRECT The direct labor efficiency variance equals the standard labor rate
times the difference between actual and standard hours. Because each
unit requires 0.25 hours of labor, the standard hours allowed for
November would have been 4,750 (0.25 x 19,000 units of output).
Accordingly, the variance is $2,000 [$8.00 standard rate x (5,000
actual hrs. - 4,750 standard hrs.)]. This variance is unfavorable
because the actual hours exceeded the standard hours.
**********************************************************************
Question # 34
London Enterprise uses a standard cost system in its appliance
division. The standard cost of manufacturing one unit of Gimmicks is
as follows:
Materials - 120 pounds at $1.50 per pound $180

Labor - 3 hours at $15 per hour 45
Factory Overhead - $16 per labor hour 48
______
$273
-------
The budgeted variable factory overhead rate is $6 per labor hour, and
the budgeted fixed factory overhead is $54,000 per month. During
June, London Enterprises produced 1,650 units of Gimmicks compared
with a normal capacity of 1,800 units.
The actual cost per units was:
Materials (purchased and used)-
116 pounds at $1.65 per pound $191.40
Labor - 3.1 hours at $15 per hour 46.50
Factory overhead ($79,860 for 1650 units) 48.40
________
Total actual cost per unit $286.30
========
Page 18
The total materials quantity variance for June is:
A. $9,900 favorable
C. 28,710 favorable
D. 28,710 unfavorable
CORRECT The materials quantity variance equals the standard price times the
difference between the actual and standard quantities. This variance
is therefore equal to $9,900 favorable [$1.50 standard unit cost x
(116 lbs.used per unit - 120 lbs. standard per unit) x 1,650 units
produced].

**********************************************************************
Question # 35
as follows:

______
$273
-------

________
========
The materials price variance for June is:
D. $29,700 favorable
CORRECT The materials price variance equals the actual quantity used times the
difference between the actual and standard prices per unit. This
variance therefore equals $28,710 Unfavorable [(116 lbs. x 1,650 units
) x ($1.65 - $1.50)]
Page 19
**********************************************************************
Question # 36

as follows:
______
$273
-------
________
========
The labor rate variance for June is:
B. $2,700 favorable
D. $0

CORRECT The labor rate variance equals acutal hours used times the difference
between actual and standard rates. It is calculated in the same way
as the materials price variance. Because the standard rate and the
actual rate were both $12 per hour, the labor rate variance is $0.
**********************************************************************
Question # 37

as follows:
______
$273
-------
Page 20

________
========
The flexible budget overhead variance for June is:
A. $0.
B. $6,540 favorable
D. $3,840 favorable

WRONG! Correct choice: D The flexible budget overhead variance is the

difference between total
actual overhead costs and the amount shown on a
flexible budget.
Standard fixed costs within the relevant range of
production are
$54,000. Standard variable overhead is $6 per labor
hour, or $18 per
unit (3 x $6). Accordingly, budgeted total overhead
at the actual
output level is $83,700 [($18 VOH x 1,650 units) +
$54,000 FOH], and
the flexible budget overhead variance is $3,840
Favorable ($79,860
actual - $83,700 budgeted).
**********************************************************************
Question # 38
Which of the following management practices involves concentrating on

areas that deserve attention and placing less attention on areas
operating as expected?
A. Management by objectives.
B. Responsibility accounting
C. Benchmarking.
D. Management by exception.
CORRECT Management by exception gives significant attention only to those
areas in which material variances from expectations occur.
Consequently, management focuses resources where the greatest
returns from supervisory effort may be achieved.

**********************************************************************
Question # 39
Page 21
The best basis upon which cost standards should be set to measure
controllable production inefficiencies is
A. Engineering standards based on ideal performance.

B. Normal capacity.
C. Recent average historical performance.
D. Engineering standards based on attainable performance.
CORRECT Standards must be accepted by those who will carry them out if they
are to have maximum effectiveness. Subordinates should believe that
standards are both fair and achievable. Stanard costs are often based
on the results of time and motion studies, or other types of
engineering standards.

**********************************************************************
Question # 40
The difference between the actual amounts and the flexible amount for
the actual output achieved is the
A. Production volume variance

B. Flexible budget variance
C. Sales volume variance
D. Standard cost variance

CORRECT A flexible budget is a series of the several budgets prepared for many
levels of activity. A flexible allows adjustment of the budget to the
actual level before comparing the budgeted and actual results. The
difference between the flexible budget and acutal figures is known as
the flexible budget variance.
**********************************************************************
***********************************YOUR SCORE
REPORT********************************************
Correct Answer : 31
Incorect answer : 9
Unanswered : 0
Percentage correct : 78
Status: Congratulations! You have passed
************************** Our understanding of the
student**********************************
Dear RASHMI MAN
You have answered 57 percentage of Level A questions
and hence your basic understanding of the concepts needs improvement. Less than 85%
proficiency in this area is not acceptable. You need to view the class Videoes more
often and study the IMA textbooks followed by fast rehersal of the Participant
Guide
and the IPFC classnotes.
Page 22
YOu have correctly answered 85 %age of Level B

questions and hence, you are doing well with Level B questions. A score below 75% in
level B can be risky if you do not perform well in Level C and Esay areas
YOu have correctly answered 80 %age of Level C
questions and hence, you are doing well with Level C questions. A score below 70% in
level C can be risky if you do not perform well in Essay areas

**********************************************************************
----------------------------------------------------------------------
This Exam Rank : 10/45
Percentage correct : 78
Percentile position : 78
Last Exam Rank : NOT Applicable
Last Exam %correct : NOT Applicable
Last Exam Percentile: NOT Applicable
FIRST 5 Results
----------------
Name Rank Correct Percentile Percentage
--------------------------------------------------
shaunak pa 1 38 97.8 95.0
Manoj Chal 2 38 95.6 95.0
Edwin 3 35 93.3 87.5
Edwin 4 35 91.1 87.5
Ajay Patil 5 34 88.9 85.0
Last 3 results
43 9 4.4 22.5
44 9 2.2 22.5
45 7 0.0 17.5
**********************************************************************
Area-wise strength-weakness report
**********************************************************************
Area No of Questions Correct Wrong %age correct
-----------------------------------------------------------------------
Flexible Budget 1 1 0 100
Material Vaiances 8 8 0 100
Labor Variances 7 7 0 100
Overhead Variances 9 7 2 78
Sales Variance 1 0 1 0
Management by Exception 1 1 0 100
Responsibility Acctg 6 3 3 50
Perf Measures-Fin-ROI 1 0 1 0
Perf Measures-Fin-RI 1 1 0 100
Standard Costing System 2 2 0 100
Transfer Pricing 3 1 2 33
**********************************************************************

Page 23

Feedback - MOCKP1B2

Uploaded by

Copyright:

Available Formats

You might also like

Feedback - MOCKP1B2

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Feedback - MOCKP1B2

Uploaded by

Copyright:

Available Formats

Feedback - MOCKP1B2.

MOCK TEST RESULT ANALYSYS

Student name: RASHMI MAN

WRONG! Correct choice: D This is the defination of responsibility accounting.

Segmented income statements are most meaningful to managers when

No of correct respondees to this question : 23 out of 45

No of correct respondees to this question : 40 out of 45

Most firms use return on investment (ROI) to evaluate the performance

A. Total assets available.

You have answered : D

No of correct respondees to this question : 28 out of 45

Residual income is a better measure for performance evaluation of an

You have answered : B

You have answered : D

No of correct respondees to this question : 32 out of 45

A. Is an expected future expense which will be different under various

You have answered : C

CORRECT Option C is the defination of a controllable expense.

No of correct respondees to this question : 35 out of 45

The following is a summarized income statement of Carr Co.'s profit

Which of the following amounts would most likely be subject to the

You have answered : B

The variable overhead spending variance for the period is:

You have answered : A

CORRECT $135,000 OH x .2=27,000 FOH

108,000/9000 = $12 per unit

CORRECT Variable OH efficiency variance:

No of correct respondees to this question : 25 out of 45

The fixed OH budget (spending) variance for the period is:

CORRECT Fixed OH budget variance:

No of correct respondees to this question : 23 out of 45

Chemking uses a standard costing system in the manufacture of its

You have answered : B

You have answered : D

No of correct respondees to this question : 24 out of 45

Chemking uses a standard costing system in the manufacture of its

You have answered : C

a. Labor rate predictions

1.25 DLH x $12.00/DLH = $15.00/units produced

The actual operating results for the month were as follows:

Actual units produced 5,200

You have answered : D

Actual number of hours = 6,600

Direct labor efficiency variance = (6500-6600) * $12 = -1200

a. Performance of the workers using the material

No of correct respondees to this question : 30 out of 45

Division Z of a company produces a component that it currently sells

A. $12 per unit.

You have answered : A

Other data follow:

WRONG! Correct choice: D Opportunity costs are $0 because A's facilities

A. Market-based transfer pricing.

A company's flexible budget shows an expected variable delivery

No of correct respondees to this question : 22 out of 45

If overhead is applied on the basis of units of output, the variable

You have answered : C

CORRECT The fixed overhead spending(budget) variance is the difference between

Variable overhead (4 hours at $8/hour) $32