CIMA Exam CIMAPRO19-P01-1 Topic 7 Question 101 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam

Question #: 101
Topic #: 7

GH manufactures a product using skilled labour and high quality materials. The company operates a standard costing system and a just-in-time (JIT) purchasing and production system. The standard selling price and variable costs for one unit of the product are as follows:

Calculate the following variances for October, taking account of the more detailed information regarding the labour mix:

(i) The total labour efficiency variance

(ii) The total labour mix variance

(iii) The total labour yield variance

Select the correct statements.

ALabour yield variance: $ 144 000 A

BLabour mix variance: $ 66 000 F

CLabour efficiency variance: $ 78 000 A

DLabour efficiency variance: $ 78 000 F

ELabour efficiency variance: $ 88 000 F

FLabour mix variance: $ 75 000 F

GLabour efficiency variance: $ 98 000 A

HLabour mix variance: $ 63 000 A

Show Suggested Answer

Suggested Answer: A

References:

by Edda at Sep 18, 2024, 04:00 PM

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Theresia

6 days ago

I think the correct answer for the total labour efficiency variance is option C, $78,000 A.

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Christiane

7 days ago

I agree, it required a good understanding of standard costing and labour variances.

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Theresia

10 days ago

I found the question about variances in the exam quite challenging.

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