Tag: Budgets

Accounting Multiple Choice Question – 8 November 2023

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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The following budgeted information is supplied by Alex Trading Ltd.

  • selling price per unit £150
  • total costs per unit £120
  • budgeted sales 6,000 units

Variable costs are 40% of total costs.

What are the total budgeted fixed overheads for the period?

Select ONE answer:

  1. £288,000
  2. £360,000
  3. £432,000
  4. £540,000

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

  1. Not correct
  2. Not correct
  3. Correct – £120 * 0.6 * 6,000
  4. Not correct

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Accounting Multiple Choice Question – 18 September 2023

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Budgeted and actual results are as follows:

  • materials (kgs per unit) budgeted 24 AND actual 26
  • materials (price per kg) budgeted £12 AND actual £16
  • labour (hours per unit) budgeted 8 AND actual 6
  • labour (rate per hour) budgeted £25 AND actual £22

What is the total variance per unit manufactured?

Select ONE answer:

  1. £60 adverse
  2. £72 adverse
  3. £86 adverse
  4. £120 adverse

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

  1. Correct – (24 * £12 + 8 * £25) – (26 * £16 + 6 * £22)
  2. Not correct
  3. Not correct
  4. Not correct

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This work is licensed under a Creative Commons Attribution 4.0 International License.

Accounting Multiple Choice Question – 15 September 2023

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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The table shows an annual budget for Alex Ltd:

  • units produced – 20,000
  • direct material – £80,000
  • direct labour – £120,000
  • variable overheads (at 100 % of prime cost) – £200,000
  • fixed costs – £280,000
  • Total costs – £680,000

As the actual production is only 16,000 units, Alex Ltd produces a flexible budget.

What is the revised total budgeted cost?

Select ONE answer:

  1. £320,000
  2. £560,000
  3. £600,000
  4. £640,000

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

  1. Not correct
  2. Not correct
  3. Correct – (£80k / 20,000 * 16,000) + (£120k / 20,000 * 16,000) = £160,k * 2 (100% of prime costs) + £280k FC
  4. Not correct

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Accounting Multiple Choice Question – 17 July 2023

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Alex plc budgets to produce 110,000 units.

Market research shows that the demand for the product will be for 90,000 units.

The table shows the resources required for the budgeted production, and the available resources for Alex plc.

  • resources required per unit – material 3 kilos + direct labour hours 2.5 + machine hours 0.5
  • resources available – 335,000 kilos + 300,000 labour hours + 110,000 machine hours

What is the principal limiting factor in this case?

Select ONE answer:

  1. direct labour
  2. machine hours
  3. material
  4. sales

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct

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This work is licensed under a Creative Commons Attribution 4.0 International License.