4. What are the disadvantages of marginal costing? 5. What is the purpose of the limiting factor method, and give TWO ex

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4. What are the disadvantages of marginal costing?
5. What is the purpose of the limiting factor method, and give
TWO examples of which resources could be limited?
6. The following details are available for the direct materials
used by for one unit made by LMN Ltd: -
Unit Cost
Materials (8kg x $0.80/kg) $6.40
In the last period, budgeted production was 850 units and actual
production was 870 units. Materials purchased and used in the
period was 8,200kg and cost $6,888.
Which of the following correctly states the material price and
material usage variances for the period?
A. $286 (A) $992(A)
B. $328(A) $1,120(A)
C. $286(A) $1,120(A)
D. $328(A) $992(A)
7. Which TWO of the following is a probable causes of an adverse
labor efficiency variance?
A. The original budgeted hours were set too low.
B. The employees were more skilled than had been planned
for.
C. Sales units were lower than budgeted.
D. A lower quality of material was used.