Consider the following data for a company during the month of June 2012 Budgeted hours 4,000 Standard hours for actual production 4,400 Maximum possible hours in the budget period 4,800 Actual hours 3,800 The activity ratio of the company during the month is

Related Mcqs:

1. For the past 3 years, DK Ltd. has failed to accrue unpaid wages earned by workers during the last week of the year. The amounts omitted, which were considered material, were as follows:
   March 31,2010 – ` 56,000
   March 31, 2011 – ` 51,000
   March 31, 2012 – ` 64,000
   The entry on March 31, 2012 to rectify these omissions would include a

   A. Credit to wage expense for ` 64,000
   B. Debit to wage expense for ` 64,000
   C. Debit to wage expense for ` 51,000
   D. Debit to wage expense for ` 13,000

2. Budgeted sales for the next year is 5,00,000 units. Desired ending finished goods inventory is 1,50,000 units and equivalent units in ending W-I-P inventory is 60,000 units. The opening finished goods inventory for the next year is 80,000 units, with 50,000 equivalent units in beginning W-I-P inventory How many equivalent units should be produced?

   A. 5,80,000
   B. 5,50,000
   C. 5,00,000
   D. 5,75,000

3. A company is currently operating at 80% capacity level. The production under normal capacity level is 1,50,000 units. The variable cost per unit is ` 14 and the total fixed costs are ` 8,00,000. If the company wants to earn a profit of ` 4,00,000, then the price of the product per unit should be

   A. 37.50
   B. 38.25
   C. 24.00
   D. 35.00

4. Find the value of opening stock from the following data. Purchases 1,50,000, Closing stock 30,000 Sales 2,20,000, Gross profit 40,000.

   A. 50,000
   B. 55,000
   C. 60,000
   D. 65,000

5. During the accounting period, sales revenue is Rs. 25,000 and accounts receivable increases by Rs. 8,000. What will be the amount of cash received from customers for the period?

   A. Rs. 33,000
   B. Rs. 25,000
   C. Rs. 17,000
   D. Rs. 8,000

6. Consider the following data pertaining to the production of a company for a particular month :

   Opening stock of raw material 11,570
   Closing stock of raw material 10,380
   Purchase of raw material during the month 1,28,450
   Total manufacturing cost charged to product 3,39,165
   Factory overheads are applied at the rate of 45% of direct labour cost.
   The amount of factory overheads applied to production is
   A. 65,025
   B. 94,287
   C. 95,020
   D. 1,52,624

7. During the year 2011-2012, the value of closing inventory was overstated by 25,000. Which of the following is true?

   A. The cost of goods sold was overstated during 2011-2012 and income will be understated during 2012-2013
   B. The income was overstated during 2011-12 and closing inventory will be overstated during 2012-2013
   C. The retained earnings was overstated during 2011-2012 and retained earnings will be understated during 2012-2013
   D. The cost of goods sold was understated during 2011-2012 but retained earnings will not be affected during 2012-2013

8. Sundry debtors as per Trial Balance is 43,000 which includes 2,200 due from ‗H in respect of goods sent to him on approval basis, the cost price of which is 1,800. Rectification would involve:

   A. Adding 2,200 to closing stock
   B. Deducting 1,800 from closing stock and deducting 2,200 each from debtors and sales
   C. Adding 1,800 to closing stock and deducting 2,200 each from debtors and sales
   D. Deducting 1,800 from debtors

9. Calculate the amount of cash if: Total assets=$10,000 Total liabilities=$10,000 Total Capital=$5000

   A. $6000
   B. $10,000
   C. $5000
   D. $1000

10. The beginnings inventory of the current year is overstated by 5,000 and closing inventory is overstated by 12,000. These errors will cause the net income for the current year by

    A. 17,000 (overstated.
    B. 12,000 (understated.
    C. 7,000 (overstated.
    D. 7,000 (understated.