CIMA Exam CIMAPRO19-P02-1 Topic 3 Question 30 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam

Question #: 30
Topic #: 3

The performance report for the production manager of a company for the last month included the following.

1,000 direct labor hours were worked at a basic rate of pay of $10 per hour. 200 of these hours were worked during overtime for which a 30% overtime premium was paid. 80 of these overtime hours were to fulfill a customer order that had originally been planned for manufacture next month. The sales manager had agreed to bring forward the delivery of this order at the request of the customer. The remaining overtime hours were due to unexpected inefficiency of the workforce; this has been traced to poor supervision by a junior manager.

Material costs included the following:

$5,300 of material

AMaterial A is a commodity and, due to changes on the global market, the actual unit cost of this material for last month was 6% higher than had been expected
$5,250 of material B. The usage of material B last month was 5% higher than it should have been due to faulty workmanship on the production line.
What is the total value of the above costs that was controllable by the production manager?

A$20,610

B$19,810

C$20,910

D$20,360

Show Suggested Answer

Suggested Answer: A, A

by Alease at May 06, 2022, 05:38 AM

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