Answer Happy

1) During the first quarter of the year, a business purchased
6,000 kg of raw materials at $16 per kg. At the end of the quarter,
there was a materials price variance amounting to $6,000
(A).
What was the standard cost per kg?
2) Jazzy Ltd shows you the following standard cost card
(extract) for a product
Direct materials 6 kg @$28 per kg.
$168
During the year, the company purchased 5,000kg of material at
$27.20 per kg and used 4,500 kg to produce 800 units.
Calculate the material price variance.
a.
$4,000 (A)
b.
$4,000 (F)
c.
$3,600 (F)
d.
$3,600 (A)
3) ABC Ltd's contribution margin is 25% and it must earn
$1,600,000 to break-even. if the entity seeks to earn $500,000 in
profit:
What is the sales figure?
a.
$1,600,000
b.
$2,400,000
c.
$3,600,000
d.
$900,000
4) ABC Ltd's contribution margin is 25% and it must earn
$1,600,000 to break-even. if the entity seeks to earn $500,000 in
profit:
What is the Fixed Cost?
a.
$900,000
b.
$360,000
c.
$700,000
d.
$400,000