SCHOOL OF BUSINESS
MANAGEMENT ACCOUNTING & FINANCE (BAF2016)
AY 2011/12 MID-SEM TEST
Name:___________________________________ Tutorial Class:____ Admission No. __________________________Seat No:____
TIME ALLOWED: 1 HOUR
READING TIME: 10 MINUTES
TOTAL: 40 MARKS
1. Do not turn the page over until instructed to do so.
2. This paper consists of 5 printed pages (excluding cover page).
3. Answer ALL questions and show all workings clearly, where applicable round off your answers to 2 decimal places.
4. Write your answers (including answers to MCQ) in the answer booklet provided.
5. Write your name, admission number, seat number and tutorial class on both the test paper and answer booklet.
6. Submit BOTH the test paper and answer booklet to the invigilator at the end of the test.
Question 1 (12 marks)
ANSWER ALL 12 Multiple Choice Questions (1 mark each).
Use BLOCK LETTERS for your MCQ answers.
1. Which of the following item is not an example of a conversion cost?
A) Wages of assembly worker
B) Depreciation of factory machinery
C) Screws used for the production of spectacles
D) Salary of quality control supervisor
E) Fabric used for the production of T-shirts
2. Which of the following types of businesses is least likely to use process costing system?
A) Shampoo manufacturer
B) Oil refining company
C) Potato chip manufacturer
D) Home renovation company
E) DVD player manufacturer
3. Which of the following is a form of short-term financing that a business can use to meet its financial needs?
A) Hire purchase
C) Issuing of bond
D) Accounts receivable factoring
E) Venture capital funding
Use the following information to answer questions 1.4 to 1.8.
Countme Pte Ltd currently allocates factory overhead to its two models of calculators, Basic and Advance, based on direct labour hours. The company is considering switching to activity-based costing and has established the following data:
| |Product Model | | | |Basic |Advance |Total | |Units produced |20,000 |10,000 | | |Activities |Activity Cost Pool |Usage | | |Assembly |$180,000 |25,000 DLH |15,000 DLH |40,000 DLH | |Production setups |$42,000 |2,800 SU |3,200 SU |6,000 SU | |Machine processing |$240,000 |35,000 MH |25,000 MH |60,000 MH | |Total factory overhead |$462,000 | | | |
DLH denotes direct labour hours; SU denotes setup; MH denotes machine hours. 4. Determine the activity rate for assembly activity.
A) $ 4.00 per DLH
B) $ 4.50 per DLH
C) $ 7.00 per DLH
D) $ 7.20 per DLH
E) $12.00 per DLH
5. Determine the activity rate for production setups activity.
A) $ 4.00 per SU
B) $ 4.50 per SU
C) $ 7.00 per SU
D) $13.13 per SU
E) $15.00 per SU
6. Determine the activity rate for machine processing activity.
A) $4.00 per MH
B) $4.50 per MH
C) $6.86 per MH
D) $7.00 per MH