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P1B
INTERNATIONAL PROFESSIONAL FINANCIAL CAREERS ACADEMY PVT LTD
MOCK TEST RESULT ANALYSYS

PART 1 CMA: Performance Management, Sec B
-----------------------------------------
Student name: RASHMI MAN
Level A : Easy
Level B : Moderate
Level C : Tough
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Question # 1
Plastek Corporation produces platic kitchenware. It uses a standard
costing system. In May 2004, 20000 sets were produced. Plastek has
two direct manufacturing cost categories: Direct manufacturing labor
and direct materials. The variances are recognized as early as
feasible. The standard direct materials allowed for one set is 0.2 kg
at $20 per kilogram. Standard manufacturing labor time per set is 0.3
hours at $15 per hour. On the first of May 2004, there were no
beginning inventories of direct materials or work in process. The
actual data for May 2004 is given below:
Quantity Cost/unit
Direct materials purchased 4500 kg $20.50/kg

Direct materials used 3900 kg
Direct labor used 6200 hours $16.50/hr
The direct materials price variance for May 2004 was?

a. $2250 Unfavorable
b. $1950 Unfavorable
c. $2000 Unfavorable
d. $1950 Favorable
You have answered : A

This is a Level B question
CORRECT Since the company recognizes variances as early as feasible, the
variances are recognized when the purchases are being recorded. So,
the direct material price variance = (20-20.5)*4500 = $2250
unfavorable
No of correct respondees to this question : 29 out of 48
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Question # 2
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Feedback - MOCKP1B1.P1B
Quantity Cost/unit
The direct costs debited to the work-in-process control account in May
were?
a. $141,950
b. $181,000
c. $170,000
d. $142,000
You have answered :

U Hv not Answered this The direct cost that will be debited to the WIP control
a/cin June
will be the standard direct costs. Total std costs are
numbers of
units produced times the standard direct costs per unit. The
standard
direct materials cost is 0.2 kg *$20 per kg = $4 per unit.
The std
direct labor cost/unit = 0.3 hrs * $15/hr = $4.5/unit. So,
the direct
std costs in May were 20000 units * (4+4.5)=$170,000
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Question # 3

Quantity Cost/unit

The total direct labor variance in May 2004 was
a. $9,200 unfavorable
b. $3,000 favorable
c. $12,300 favorable
d. $12,300 unfavorable
You have answered : D
CORRECT The total direct labor variance is the difference between the std
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labor costs and the actual labor costs. The std labor costs were
$90,000 (20000 units *0.3 hrs * $15/hr). The actual direct labor costs
were 6200 hrs * $16.5/hr = $102,300. The difference between them is
$12,300 unfavorable
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Question # 4

Quantity Cost/unit

Which of the following could be a possible explanation for the

favorable and unfavorable direct materials variances?
a. The materials purchased were of inferior quality, and this is why

an unfavorable materials price variance was recorded.
b. The materials purchased were of high quality, and this is why a
favorable materials efficiency variance was recorded.
c. The production workers were inefficient in using materials, and

this is why the total materials variance was unfavorable
d. The purchasing department is to be blamed for the unfavorable

materials price variance.
You have answered : C

WRONG The DM qty or efficiency variance is needed to answer this. Th formula

(SQ-AQ)*SP. Ther std qty is the month's production of 20,000 sets *
the std DM allowed of .2 kg for one set, or 4000 kg. The actual amt of
DM used is given 3900 kg. The materials eficiency variance =
(4000-3900)*$20 = $2000 favorable.
It is possible that the materials purchased were of high quality, and
they were therefore better utilized in production. This resulted in
less scrap and waste and created the favorable materials efficiency
variance.
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Question # 5
Bapsa Company uses a standard costing system. Variable
manufacturing overhead is allocated to products based on budgeted
direct labor hours per unit. The fixed portion of the overhead is
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allocated on a per unit basis at a budgeted rate set at the beginning
of the month. The following information was gathered about production
overhead cost in May 2004.
Budgeted data for May 2004:
Direct labor hours 0.35 hours per unit

Variable Mfg OH rate $12/hr
Fixed Mfg OH $385,000
Planned level of production 9500 units
Actual results for May 2004:
Variable mfg OH rate $11.50/hr
Actual output 10,000 units
Total direct labor hrs 3,550 units
The variable manufacturing overhead spending variance for May 2004 is:
b. $1,775 favorable
c. $1,750 unfavorable
d. $1,750 favorable
You have answered : B

This is a Level C question
CORRECT The variable Mfg OH spending variance = (12.11.5)*3550 hrs = $1775 fav
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Question # 6

The total manufacturing efficiency variance for May 2004 is?

a. $600 unfavorable
b. $600 favorable
c. $575 unfavorable
d. $575 favorable
Page 4
WRONG Because a fixed OH efficiency variance does not exist, the total mfg
efficiency variance is simply the variable mfg efficiency variance,
which is like a qty variance. (3500-3550)*$12 = $600 unfav
**********************************************************************
Question # 7


The under or over applied fixed overhead for the month is?
a. $5,000 favorable
b. $5,000 unfavorable
c. $15,000 underapplied
d. $15,260 overapplied

CORRECT Under or overapplied fixed OH is equal to the diff between theactual

FOH and the allocated FOH. The allocated OH is calculated as AQ*SP.
The std allocation rate must be calculated from the information given
by dividing the planned costs of $385,000 by the planned level of
production of 9500, which is $40.526. Thus, the allocated OH was 10000
* 40526 = $405,260. The actual fixed OH was $390000. Therefore the
actual fixed OH was overapplied by $405,260-$390,000 = $15,260
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Question # 8

Page 5


The under or overapplied variable overhead for the month is?
a. $925 underapplied
b. $925 overapplied
c. $1,175 overapplied
d. $1,175 underapplied

WRONG Under or oevr applied VOH is the diff between the actual VOH and the
VOH applied. The applied OH is calculated as AQ*SP, where AQ
represents the no of DL hrs (the application base) that should have
been used given the actual level of output. SP represents the std
allocation rate per hr, which is $12. Since 10000 units were produced
and the std is .35 hrs per unit, 3500 hrs of VOH was applied for the
actual prodn. Thus, the applied variable OH was 3500*$12 =42,000.
Next, we need to calculate the act VOH costs which is the actual DLH
times the actual rate = 3550*$11.5= $40,825. Therefore, the
overapplied VOH = $42,000-$40,825= $1175
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Question # 9



The sum of the variable manufacturing overhead production volume
Page 6
variance and fixed manufacturing overhead efficiency variance is?
a. $0
b. $1,175 favorable
c. $15,260 favorable
d. Nonexistent
CORRECT Neither the VOH - volume variance nor the FOH efficiency variance
exists. Therefore the sum of the two numbers does not exist.
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Question # 10


In a 2-way overhead variance analysis, the controllable variance is?
b. $1,175 favorable
c. $3,825 favorable
WRONG In a 2 way OH variance analysis, the controllable variance is the sum

of the total VOH variance and the FOH spending avriance. The total VOH
variance is the difference between the VOH applied and the actual
variable OH. Variable OH allocated is calculated as the labor hrs
allowed for the actual output (10000 units * .35 hrs/unit =3500 hrs)
multiplied by the budgeted rate $12. This gives $42,000 of applied
VOH. Act VOH is the total actual DLH (3550) multiplied by the acual
VOH rate ($12/hr). This gives $40,825. So, the Variable OH is
42000-40825=$1175 fav. The FOH spending variance is the diff between
the budgeted FOH 385000 and the actual FOH 390000 = $5000 unfav.
So, the controllable variance is an unfavorable $3825 (1175-5000)
Page 7
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Question # 11



In a 3-way overhead variance analysis, the spending variance is?
a. $1,775 favorable

WRONG In a 3-way OH analysis, the spending variance is the sum of the VOH
spending variance and the FOH spending variance. The VOH spending
variance is calculated as (12-11.5)*3550 =$1775. The FOH spending
variance is the difference between the budgeted FOH 385000 and the
Actual FOH of 390000 = $5000 unfav. So, the total spending variance is
1775-5000 = $3225

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Question # 12
Which of the following statements regarding various measures of
performance is not true?
a. Segment manager performance should include only controllable costs

and revenues
b. The contribution by SBU, or Segment Margin, is equal to the
segment's contribution margin minus traceable (non-controllable) fixed
costs allocated to the segment
c. The manufacturing contribution margin of a segment is equal to the
segment's sales minus the segment's variable manufacturing costs
d. Segment performance should include all traceable costs and revenues
including fixed costs
Page 8
WRONG This statement is incorrect because the contribution by SBU, or
segment margin, is equal to the segment's contribution margin minus
controllable fixed costs and noncontrollable but traceable fixed
costs. Noncontrollable allocated costs are not deducted in the
calculation of the contribution by SBU, or segment margin.
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Question # 13
In responsibility accounting, a segment manager's performance is
measured by controllable costs. Controllable costs include all cost
items except
a. Direct labor costs

b. Variable manufacturing costs
c. Discretionary costs
d. The manager's salary

This is a Level A question
CORRECT The manager's salary is controlled by the upper level management.

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Question # 14
The production volume variance is computed as the
a. Difference between budgeted fixed costs and the product of the

standard fixed cost per unit of input times the actual units of input
b. Difference between budgeted fixed costs and the product of the

standard fixed cost per unit of input times the standard units of
input allowed for the actual output
c. Difference between actual fixed overheads and applied fixed

overheads
d. Difference between actual fixed overheads and budgeted fixed
overheads

CORRECT The volume variance is the difference between the budgeted amt of FOH
at the expected production level and the amouont applied for the
actual prodn, using the std qty of the appicn base allowed forthe
actual prodn output and the std rate per unit.
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Question # 15
Under a standard cost system, the materials usage variances are

usually the responsibility of the
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a. Production manager and purchasing manager

b. Production manager only
c. Purchasing manager only
d. Logistics manager and production manager
WRONG Usually, unfavorable materials usage variances are caused by either

wasteful prodn or low quality materials. Likewise, favorable materials
usage variances are caused by either efficient production or high
quality of materials. So, both the production manager and the
purchasing manager can be responsible for either a fav or unfav
variance.

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Question # 16
Under which of the following management practices are the areas that
receive the most direct management efforts determined mostly on
deviations from the budgets?
a. Management by exception
b. Responsibility accounting
c. Management by objectives
d. Benchmarking

CORRECT Management by exception is the practice whereby the management

determines which areas to spend the most time on by deviations from
plans and budgets. Departments that have a negative variance will
receive more attention from management than those departments that
have either positive or no variances.
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Question # 17
Goal congruence is least likely to be promoted when:
a. The market price is used to determine the transfer price when the
selling department is working at full capacity
b. Residual income rather than return on investment is used to measure
managerial performance
c. Return on investment rather than contribution margin is used to
evaluate a profit center manager
d. The company tries to eliminate budgetary slack

Page 10
CORRECT As the profit center manager does not control investment expenditure,
he/she should not be held accountable for it. This would occur if the
return on investment is used to measure performance.
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Question # 18
Which catregory of measures is not included in a balanced scorecard?

a. Financial performance focusing on profitability
b. Customer satisfaction
c. Internal business processes
d. Economic conditions relating to the industry in which the business
operates.
CORRECT The balanced scorecard describes the specific objectives and mesures
that will be used to evaluate its achievements of these objectives.
The items included should be things that the individual is able to
influence. the manager will not be able to influence the economic
conditions surrounding the company and therefore that measures shoudl
not be included in the balanced scorecard.
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Question # 19
Eagles Fashions manufactures and sells men;s suits. The performance

report for January follows:
Actual Budget
Suits sold 5000 5500

Sales revenue $800000 $825000
Variable costs:
Materials 95000 110000
Labor 360000 330000
Mfg OH 55000 55000
------ -------
Contrn Margin $290000 $330000
Fixed costs 100000 110000

Optg Income $190000 $220000
Variable manufacturing overhead is allocated based on machine hours.
The budgeted quantity of machine hours per suit is 5 hours at an
application rate of $2 per hour. The actual rate in January was $2.20
per machine hour. Fixed overhead is allocated on a per unit basis.
Direct materials are budgeted 2 sq yards per suit at a cost of $10 per
sq yard. Actual usage in January was 1.9 sq yard per unit. Budgeted
labor hours per unit are 4 hours at $15 per hour. The actual rate per
labor hour is January was $16.
What is the static budget operating income variance for January?
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c. There is never a variance
d. The difference between contribution margin in the static budget and
in the flexible budget

WRONG The static budget variance in operating income is the difference
between the actual operating income and the budgeted opeerating
income at the budgeted volume. The actual operating income is
$190,000 and the budgeted operating income is $220,000. This is
$30,000 unfav static bud variance.

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Question # 20

Actual Budget
Variable costs:
Labor 360000 330000
Mfg OH 55000 55000
------ -------

Optg Income $190000 $220000

If Eagles uses a flexible budget, what will be the flexible budget for
revenues in January?
a. $800,000
b. $880,000
c. $750,000
d. $825,000
CORRECT The flexible budget for sales revenues in Jan will be the budgeted
Page 12
sale price per suit of $150 multiplied by the actual sales of 5,000
units, or $750,000

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Question # 21
Actual Budget
Variable costs:
Labor 360000 330000
Mfg OH 55000 55000
------ -------
Optg Income $190000 $220000

What is Eagles' Flexible budget for costs for January?
Variable Costs Fixed Costs
a. $495,000 $110,000
b. $450,000 $110,000
c. $510,000 $100,000
d. $517,000 $100,000

CORRECT The flexible budget for variable costs will be materials of $20 per
suit (110000/5500) plus labor of $60/unit (4*15) plus VOH of $10 per
suit (5*2), for a total variable cost of $90/suit. This variable cost
per suit multiplied by the actual number of suits sold of 5,000 is
$450,000. The flexible budget for fixed costs is the same as the
budgeted fixed costs in the static budget, or $110,000
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Question # 22
Page 13
Actual Budget

Variable costs:
Labor 360000 330000
Mfg OH 55000 55000
------ -------

Optg Income $190000 $220000
What is the flexible budget variance in operating income?

b. $30,000 favorable
d. 0

WRONG The flexible budget variance in this case is zero (this is not always
the case, however). The flexible budget variance is the difference
between actual operating income and the operating income as per the
flexible budget. We have already determined that flexibel budget for
sales revenues is $750,000 ($150*5000). And we have determined that
the flexible budget amounts for variable costs and fixed costs are
$450,000 and $110,000, respectively. Thus, the flexible budget
operating income is $750,000 - $450,000 - $110,000 = $190,000. Actual
operating income is $800,000-$510,000 variable costs - $100,000 fixed
costs, or $190,000. This is exactly the same as the flexible budget
operating income, so the flexible budget variance is zero.
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Question # 23

Actual Budget
Page 14
Variable costs:
Labor 360000 330000
Mfg OH 55000 55000
------ -------
Optg Income $190000 $220000

What is the sales volume variance?

CORRECT The sales volume variance can be calculated only in comparisonto the
static budget because in a flexible budget, sales volume is the same
for the actual and the budget. The sales volume variance is the
difference between the flexible budget optg income and the static
budget otg icnome. It can be calculated by calculating optg income
under both budgets and thn determining the variance. However, since
fixed costs are the same under the flexible budget and the static
budget,it is esier to calculate the sales volume variance as
(SQ-AQ)*SP, where SP represents budgeted contribution margin per unit
(note that budgeted contribution margin per unit arethe same under the
flexible budget and the static budget). The budgeted contribution
margin per unit is $60 ($150 budgeted selling price less $90 budgeted
variable costs). Thus the sales vlume variance is (5500-5000) * $60=
$30,000 unfavorable.

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Question # 24
To motivate managers and employees to work towards organizational

goals, budgets must
a. Have easily achievable standards

b. Be se by top management
c. Be prepared with participation by subordinates
d. Be difficult to attain
Page 15
CORRECT Participative budgeting creates a sense of ownership by subordinates.

So, it also improves the motivational aspect of budgeting.

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Question # 25
Objectivity is one of the key elements of ethical behavior as
established by the IMA Standards of Ethical conduct. Objectivity
includes:
a. Refusing any gift or/and favor what would influence the

individual's actions
b. The avoidance of actual or apparent conflict of interests
c. The performance of professinal duties in accordance with relevant
laws, regulations and technical standards
d. Communication of information in a fair and objective manner

WRONG Objectivity means that a practitioner communicates information fairly

and objectively and discloses fully all relevant information, both
good and bad.

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Question # 26
Listed below the selected financial information for the Western

Division of Hinzel Company for the last year:
Average working capital $625,000

General and admin exp 75,000
Net Sales 4,000,000
Average plant and equipmnt 1,775,000
Cost of goods sold 3,525,000
If Hinzel treats the Western Division as an investment center for

performance measurement purpopses, what is the before tax ROI for last
year?
a. 34.78%
b. 22.54%
c. 19.79%
d. 16.67%

CORRECT ROI is calculated as the net income divided by the average invested
assets. In this problem, average invested assets includes the
property, plantand equipment and the working capital. This makes the
average investment $2,4000,000. The net income is calculated as sales
minus expenses, or $4,000,000 - $3,525,000 - $75,000 = $400,000. RoI
= 400,000/2400,000 = 16.67%
Page 16
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Question # 27
The selection of the denominator in the return on investment formula

is critical to the measure's effectiveness. Which denominator is
criticized because it combines the effects of operating decisions made
at one level of the organization with financing decisions made at
another organization's level?
a. Total assets employed
b. Working capital
c. Total assets available
d. Shareholders' equity

WRONG Shareholders' equity is usually not used in the ROI calculation

because decisions about equity are made outside the control of people
who are being evaluated.
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Question # 28
Robertson Inc had the following information for 2010:
Sales $500,000
Optg income 50,000
Optg assets 200,000
Imputed int. rate 10%
What amount of residual income did Robertson have?
a. ($20,000)
b. $5,000
c. $10,000
d. $30,000
CORRECT RI is theexcess of income over the target level of income. The target
was 10% of the invested assets of $200,000, or $20,000. Since income
was $50,000, the RI was $30,000
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Question # 29
REB Service co is a computer service center. For the month of May
1995, REB had the following operating statistics:
Sales $450,000
Optg income 25,000
Net profit after tax 8,000
Total assets 500,000
Shareholders equity 200,000
Page 17
Cost of capital 6%
Based on the above information,which one of the following statements
is correct? REB has a:
a. Return-on-investment of 4%
b. Resisual income of ($5,000)
c. Return on investment of 1.6%
d. Residual income of($22,000)

CORRECT The target income for the co is $30,000 as this is 6% of the assets of
the company. As the income was only $25,000, the RI is -5,000$
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Question # 30
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. The arguments about the implicit cost of interest are eliminated

CORRECT Because RI focuses on dollar return, this method will prevent a co

from rejecting an investment that would be profitable from a cash
standpoint, but simply has a lower % return than desired.
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Question # 31
XYZ Co has total assets of $4,000,000, Current liabilities of

$1,400,000 and operating income after taxes of $420,000. Its weighted
average cost of capital is 10%. How much economic value added does
the company have?
a. $180,000
b. $160,000
c. $165,000
c. ($165,000)
You have answered :

U Hv not Answered this (Total Asset - Current liabilities)*WACC =
($4,000,000-$1,400,000)*.1=
$260,000
Page 18
EVA=$420,000-$260,000 = $160,000

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Question # 32
Division A of a company is currently operating at 50% capacity. It
produces a single product and sells all its production to outside
customers for $13 per unit. Variable costs are $7/unit, and fixed
costs are $6/unit at the current production level. Division B, which
currently purchases this product from an outside suplier for $12/unit,
would like to purchase the product frm Division A. Division A will
operate at 80% capacity to meet the demand of outside customers and
Division B. What is the minimum price that division A should charge
Division B for this product?
a. $9.60 per unit
b. $12.00 per unit
c. $13.00 per unit
d. $7.00 per unit

CORRECT When operating below capacity, the minimum price it will charge an
internal division is the variable cost of production; $7 in this
question.

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Question # 33
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 Western 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. Negotiated transfer pricing

b. Cost plus 20% transfer pricing
c. Cost-based transfer pricing
d. Market based transfer pricing

CORRECT Since the transfer pricing that has been set is the market price, this
is amarket based transfer pricing.
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Question # 34
Which of the following perspectives of the balanced scorecard should
every cause-and-effect chain be linked to?
Page 19
a. Financial
b. Customer
c. Internal Business Process
d. Learning and growth

CORRECT Every casue and effect relationship is linked to the Financial

Perspective. They jointly contribute to the financial welfare of the
business.
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Question # 35
Which of the followings is a customer performance driver?
a. Market share
b. Lead time
c. Retention
d. Profitability

CORRECT Minimizing lead time helps the causes of the customers.
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Question # 36
Periodic surveys of employee motivation are an example of a
a. Learning and growth outcome measure

b. Learning and growth performance driver
c. Customer outcome measure
d. Customer performance driver

WRONG Performance drivers for organizatoinal alignment include periodic

surveys of employees to determine their level of motivation to achive
critical success factors in the Balanced Scorecard.
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Question # 37
The process time critical success factor would be measured best by
which of the following?
a. Surveys
b. ROI
c. Customer returns
d. Turnaround
Page 20
WRONG Set up time, turnaround and lead time are measures of Process time
CSF in the Internal Business Process perspective
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Question # 38
The balanced scorecard provides an action plan for achieving
competitive success by focusing management attention on critical
success factors. Which one of the following is not one of the critical
success factors commonly focused upon in the balanced scorecard?
a. Financial performance measures

b. Internal business processes
c. Competitor business strategies
d. Employee innovation and learning

CORRECT The critical success factors used in the BSC are:
-Financial Performance
-Customer Satisfaction
-Internal Business Processes
-Innovation and learning
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Question # 39
Fairmont Inc uses an accounting system that charges costs to the

manager who has been delegated the authority to make the decisions
incurring the costs. For example, if the sales manager accepts a rush
order that will result in higher-than-normal manufacturing costs,
these additional costs are charged to the sales manager because the
authority to accept or decline the rush order was given to the sales
manager. This type of accounting system is known as
a. Responsibility accounting
b. Functional accounting
c. Reciprocal allocation
d. Transfer price accounting
CORRECT Responsibility accounting holds managers responsible only for factors
under their control. For this purpose, operations are organized into
responsibility centers. Costs are classified as controllable and
noncontrollable, which implies that some revenues and costs can be
changed through effective management. If a manager has authority to
incur costs, a responsibility accounting system will charge them to
the manager's responsibility center.
Page 21
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Question # 40
Responsibility accounting defines an operating center that is

responsible for revenue and costs as a(n)
a. Profit center
b. Investment center
c. Contribution center
d. Operating unit
CORRECT A profit center is responsible for both revenues and expenses. A cost
center is responsible for costs only.
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Question # 41
Decentralized firms can delegate authority and yet retain control and
monitor manager's performance by structuring the organization into
responsibility centers. Which one of the following organizational
segments is most like an independent business?
a. Revenue center
b. Profit center
c. Cost center
d. Investment center

CORRECT An investment center is the organizational type m ost like an

independent business because it is responsible for its own revenues,
costs incurred, and capital invested. The other type of centers do not
correspond to all three elements.

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Question # 42
When using a contribution margin format for internal reporting

purposes, the major distinction between segment manager performance
and segment performance is
a. Unallocated fixed cost

b. Direct variable costs of producing the product
c. Direct fixed cost controllable by the segment manager
d. Direct fixed cost controllable by others
CORRECT Control of costs accounts for the major difference between segment
Page 22
manager performance and segment performance. Segment performance
is based on all costs directly attributable to the segement. Segment
manager performance is based on all costs directly controllable by the
segment manager. All variable costs ordinarily meet the criteria for
both measures. The difference usually arises because a fixed cost is
directly attributable to a segment but it is not controllable by the
manager. For example, a profit center manager may ahve no control over
fixed costs of the segment.

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***********************************YOUR SCORE
REPORT********************************************
Correct Answer : 27
Incorect answer : 13
Unanswered : 2
Percentage correct : 64
Status: Sorry! you have failed to receive a passing score

************************** Our understanding of the
student**********************************
Dear RASHMI MAN
You have answered 69 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.
You have correctly answered 67 %age of Level B

questions and hence, you are NOT 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 Essay areas.
YOu have correctly answered 55 %age of Level C
questions and hence you are NOT doing well with Level C questions. A score below 70%
in
level C can be risky if you do not perform well in Essay area.
**********************************************************************
----------------------------------------------------------------------
This Exam Rank : 14/48
Percentage correct : 64
Percentile position : 71
Last Exam Rank : NOT Applicable
Last Exam %correct : NOT Applicable
Last Exam Percentile: NOT Applicable
FIRST 5 Results
----------------
Name Rank Correct Percentile Percentage
--------------------------------------------------
Shyam Pras 1 42 97.9 100
Boby Phili 2 41 95.8 97.6
shaunak pa 3 40 93.8 95.2
Domini 4 39 91.7 92.9
Rishi cp 5 39 89.6 92.9
Last 3 results
46 11 4.2 26.2
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47 11 2.1 26.2
48 11 0.0 26.2
**********************************************************************
Area-wise strength-weakness report
**********************************************************************
Area No of Questions Correct Wrong %age correct
-----------------------------------------------------------------------
Static Budget Variance 1 0 1 0
Flexible Budget 3 2 1 67
Flexible Budget Variance 1 0 1 0
Material Vaiances 4 1 3 25
Labor Variances 1 1 0 100
Overhead Variances 5 2 3 40
Volume Variances 1 1 0 100
VOH Application 1 0 1 0
FOH Application 1 1 0 100
Sales Volume Variance 1 1 0 100
Management by Exception 1 1 0 100
Motivnl aspects ofBudgtg 1 1 0 100
Responsibility Acctg 3 3 0 100
Segment Performance 3 2 1 67
Perf Measures-Fin-ROI 3 2 1 67
Perf Measures-Fin-RI 3 3 0 100
Perf Measures-Fin-EVA 1 0 1 0
Perf Measures-NonFin-BSC 6 4 2 67
Transfer Pricing 2 2 0 100
Ethics 1 0 1 0
**********************************************************************
********************************** BE WATCHFUL ABOUT UNANSWERED QUESTIONS

***********
You must answer all question by prudent guessing. Wrong answer has no -ve marking.
Your score would have at least improved by 1 had you
answered all unanswered questions with a common guess, say C
************************************************************************************
**
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MOCK TEST RESULT ANALYSYS

Student name: RASHMI MAN

Direct materials purchased 4500 kg $20.50/kg

The direct materials price variance for May 2004 was?

You have answered : A

You have answered :

No of correct respondees to this question : 27 out of 48

Plastek Corporation produces platic kitchenware. It uses a standard

Direct materials purchased 4500 kg $20.50/kg

Plastek Corporation produces platic kitchenware. It uses a standard

Direct materials purchased 4500 kg $20.50/kg

Which of the following could be a possible explanation for the

a. The materials purchased were of inferior quality, and this is why

c. The production workers were inefficient in using materials, and

d. The purchasing department is to be blamed for the unfavorable

You have answered : C

WRONG The DM qty or efficiency variance is needed to answer this. Th formula

Direct labor hours 0.35 hours per unit

You have answered : B

No of correct respondees to this question : 32 out of 48

Bapsa Company uses a standard costing system. Variable

The total manufacturing efficiency variance for May 2004 is?

Budgeted data for May 2004:

Direct labor hours 0.35 hours per unit

Variable mfg OH rate $11.50/hr

You have answered : D

CORRECT Under or overapplied fixed OH is equal to the diff between theactual

Bapsa Company uses a standard costing system. Variable

Direct labor hours 0.35 hours per unit

Variable mfg OH rate $11.50/hr

The under or overapplied variable overhead for the month is?

You have answered : D

No of correct respondees to this question : 19 out of 48

Bapsa Company uses a standard costing system. Variable

Budgeted data for May 2004:

Variable mfg OH rate $11.50/hr

Budgeted data for May 2004:

Variable mfg OH rate $11.50/hr

In a 2-way overhead variance analysis, the controllable variance is?

WRONG In a 2 way OH variance analysis, the controllable variance is the sum

No of correct respondees to this question : 17 out of 48

Bapsa Company uses a standard costing system. Variable

Budgeted data for May 2004:

Actual results for May 2004:

You have answered : A

No of correct respondees to this question : 20 out of 48

a. Segment manager performance should include only controllable costs

a. Direct labor costs

You have answered : D

CORRECT The manager's salary is controlled by the upper level management.

a. Difference between budgeted fixed costs and the product of the

b. Difference between budgeted fixed costs and the product of the

c. Difference between actual fixed overheads and applied fixed

You have answered : B

Under a standard cost system, the materials usage variances are

a. Production manager and purchasing manager

WRONG Usually, unfavorable materials usage variances are caused by either