BKAL1013 CONFIDENTIAL Universiti Utara Malaysia COURSE CODE / NAME : BKAL1013/ BUSINESS ACCOUNTING DATE : 14 JANUARY 2012 (SATURDAY) 19.00 A.M. - 11.30 A.M. (2 1/2 HOURS) : DMS, TE, DTSO, DSB [Link], KYM, PMI, IKIP, NEGERI, MKM the cover page. You are required to answer ALL questions. . All answers are to be written on the answer sheet (OMR) provided. MATRIC NO : (in words ) in numbers ) IDENTIFICATION CARD NO. : 7 T [ LECTURER : GROUP : | TABLE NO. : DO NOT OPEN THIS EXAMINATION PAPER UNTIL INSTRUCTED CONFIDENTIALBKAL1013 / BUSINESS ACCOUNTING MATRIC NO. OBJECTIVE QUESTIONS (100 MARKS: 150 MINUTES) Please choose the BEST answer. Please answer on the OMR sheet provided. 1. Which of the fotlowing is the purpose of accounting? A. Provide useful information to users B. __ Provide assistance in decision making C. Performance evaluation tools D. —Allof the above 2. The two most common specialized fields of accounting in practice are: A. financial accounting and environmental accounting B. managerial accounting and accounting systems C. managerial accounting and financial accounting D. financial accounting and tax accounting 3. is a statutory body established under the Accountants Act 1967 to regulate and develop the accountancy profession in Malaysia. A. Malaysian Institute of Accountants (MIA) B. Malaysian Accounting Standards Board (MASB) C. Malaysian Institute of Certified Public Accountants (MICPA) D. Financial Reporting Foundation (FRF) 4, A type of business that is managed by owner(s) and has an unlimited liability is: A. sole proprietor B. partnership C. corporation D. AandB 5. Which of the following is the external user of accounting information? Finance directors Tax authority Investors Band C pOe>10. ‘BKALIO13 / BUSINESS ACCOUNTING ‘MATRIC NO.:__ Syahida Enterprise purchased RM20,000 of office equipment by cash from ED Company. This transaction should be recorded on the accounting records of which of the following entities based on economic or business entity assumption? A. Syahida Enterprise and ED Company B. _Syahida Enterprise and Syahida’s personal records C. Only Syahida Enterprise D. ED Company and Syahida’s personal records Which of the following are considered as accounting principles? i, Revenue recognition Historical cost Full disclosure Going concern Monetary unit cop> If total assets decreased by RM18,500 during a period of time and owner's equity increased by RM12,000 during the same period, then the amount and direction of the period’s change in total liabilities is: A. RM18,500 increase B. __ RM6,500 decrease C. _ RM6,500 increase D. —_RM30,500 decrease How does the performing of services on account affect the accounting equation? AL liabilities increase; owner’s equity decrease B. assets increase; owner’s equity increase C. assets decrease; owner’s equity increase D. assets increase; liabilities increase On 1 October 2011, the assets and liabilities of Atif Enterprise are as follows: RM Cash 10,000 Accounts Receivable 15,000 Supplies 3,000 Land 60,000 Accounts Payable 2,500 Notes Payable 12,000ul. 12. 13. 14. 15. BKALIOI3 / BUSINESS ACCOUNTING ‘MATRIC NO.: What is the amount of owner’s equity (Atif’s Capital) as of 1 October 2011: A. RMA2,500 B. — RM102,500 C. —_RM73,500 D. —_RM97,500 All of the following are financial statement(s) of a sole proprietor EXCEPT the: ‘A. statement of changes in equity B. statement of comprehensive income C. statement of financial position D. statement of revenues Liabilities are reported on the: A. statement of comprehensive income B. statement of changes in equity C. statement of financial position D. statement of cash flows ‘The normal balance of any account is consistent with the: A. Ieftside B. right side C. side which increases that account D. side which decreases that account A debit entry to a general journal may indicate a(n): decrease in liabilities and increase assets decrease in assets and increase in liabilities increase in both assets and liabilities decrease in both assets and liabilities pop> Ahmad Enterprise has debited an asset account for RM3,000 and credited a liability account for RM1,000. What can be done to complete the recording of the transaction? Nothing further must be done Debit a different liability account for RM2,000 Debit another asset account for RM2,000 Credit an owner's equity account for RM2,000 pomp16. 17. 18, 19. 20. 21 BKALIO13 / BUSINESS ACCOUNTING ‘MATRIC NO. XYZ Company purchased an office equipment for RM4,500. XYZ Company signed a note for the transaction, The journal entries for XYZ Company are debited to Office Equipment account for RM4,500, and: A. credited to Cash Account for RM4,500 B. credited to Accounts Payable Account for RM4,500 ©. credited to Notes Payable Account for RM4,500 D. _ credited to Notes Receivable Account for RM4,500 The first step in the recording process is to: A. prepare financial statements B. analyze each transaction for its effect on the accounts C. post toa ledger D. _ prepare a trial balance All of the following rules are trae EXCEPT: ‘A. credits decrease the drawing account B. debits increase the capital account C. credits increase revenue accounts D. debits decrease liability accounts On | June 2011 Dewi Enterprise reported a cash balance in the bank of RM42,000. During June, Dewi Enterprise made deposits of RM40,000 and made disbursements totaling RM85,000. What is the cash balance at the end of June? A. RM3,000 debit balance B. _ RM82,000 debit balance C. _RM3,000 credit balance D. —_ RM82,000 credit balance ‘At 31 January 2011, the balance in Mery Sdn Bhd’s supplies account was RM750. During February, Mary Sdn Bhd. purchased supplies of RMSS0 and used supplies of RM250. At the end of February, the balance in the supplies account should be: A. RM7S0 debit B. —_ RMI,050 credit C. —_ RMI,550 debit D. —_RMI,050 debit “The entire group of accounts maintained by a company is called the: A. chart of accounts B. general journal C. general ledger D. trial balance22. 23. 24, 25. 27, ‘BKALIOI3 / BUSINESS ACCOUNTING MATRIC NO. Which of the following statement is TRUE? A. The left side of a T-account is the credit side B. Debits decrease asset and expense accounts, and increase liability, equity, and revenue accounts C. The left side ofa T-account is the debit side D. Credits increase asset and expense accounts, and decrease liability, equity, and revenue accounts Raju Industries received its telephone bill in the amount of RM300, and immediately paid it. The general journal entry to record this transaction will include a: A. debit to Telephone Expense for RM300 B. credit to Accounts Payable for RM300 C. debit to Cash for RM300 D. credit to Telephone Expense for RM300 Fatin Enterprise provided consulting services and billed the client RM3,250. As a result of this event: ‘A. assets remained unchanged B. assets increased by RM3,250 C. owner's equity increased by RM3,250 D. — BothBand The receipt of cash RM200 from customers in payment of their accounts would be recorded by a: debit RM200 to Cash; credit RM200 to Accounts Receivable debit RM200 to Accounts Receivable; credit RM200 to Cash debit RM200 to Cash; credit RM200 to Accounts Payable debit to RM200 to Accounts Payable; credit RM200 to Cash Debit RM15,000 to Cash; Credit RM15,000 to Advertising Expense Debit RMI5,000 to Advertising Expense; Credit RM15,000 to Cash Debit RM15,000 to Account Payable; Credit RM15,000 to Cash Debit RMI15,000 to Advertising Expense; Credit RM15,000 to Accounts Payable A B c D. A payment of advertising expense of RM15,000 would be recorded by: A B. ec: D. ‘The type of account with a normal credit balance AL an asset B. drawings C. arevenue D. —_anexpense28. 29. 30, 31. BKALIO13/ BUSINESS ACCOUNTING MATRIC NO. What type of account is unearned revenue and what is its normal balance? Liability, credit Asset, credit Revenue, debit Asset, debit A typical adjusting entries will involve which of the following accounts? A. B. G D. An asset and a liability An expense and a liability ‘A revenue and an expense Arevenue and a drawing. The adjusting entry for revenues received in advance for subscription of magazine would: A B. ie D. increase liabilities and decrease owner’s equity decrease liabilities and increase owner’s equity increase assets and increase liabilities increase owner’s equity and decrease liabilities Optimus Primus Enterprise pays the salaries of its staff on the 4" day of each month. On 31 December 2011, the appropriate adjusting entry for the salaries has been made accordingly. On 4 January 2012, the cash payment salaries of RM13,500 to its staff will be recorded as: Debit (RM) Credit (RM) Salaries Expense 13,500 Cash 13,500 Salaries Expense 13,500 Salaries Payable 13.500 Salaries Payable 13,500 Cash 13,500 Salaries Payable 13,500 Salaries Expense 13,50032. 33 34, 35. ‘BKALIOI3 / BUSINESS ACCOUNTING ‘MATRIC NO. ‘The balance in the Prepaid Insurance Account before adjustment at 31 December 2011 is RM23,000. The additional data for the adjusting entry shows that the amount of unexpired insurance is RM7,000. The adjusting entry necessary at 31 December 2011 ist D. Debit (RM) Credit (RM) Insurance Expense 7,000 Prepaid Insurance 7,000 Insurance Expense 23,000 Prepaid insurance 23,000 Prepaid Insurance 16,000 Insurance Expense 16,000 Insurance Expense 16,000 Prepaid Insurance 16,000 On I August 2011, Sintok Auto Repair Enterprise paid RM6,000 in advance for six months rent. After adjusting entries are made, what is the balance of Prepaid Rent on 31 December 2011? A. B. Gh Dd RM6,000 RM1,000 RM2,000 RM4,000 If the machinery account has a balance of RM33,750 and its accumulated depreciation account has a balance of RM21,000, the book value of the machinery would be: A. B. cs D. RMI12,750 RM21,000 EM33,750 RMS54,750 Closing entries are made: A B. ce D. in order to terminate the business as an operating entity so that all assets, liabilities, and owner’s equity accounts will have zero balances when the next accounting period starts in order to transfer net income (or loss) and drawings to owner’s equity so that financial statements can be prepared.BKALIOI3 / BUSINESS ACCOUNTING ‘MATRIC NO. Use the following information from the Income Statement for the month of June 2011 of Demak Enterprise to answer Questions 36 to 38. RM Revenue 7,000 ‘Less: Expenses: ‘Wages Expense 2,000 Advertising Expense 200 Rent Expense 1000 Supplies Expense 300 Insurance Expense 100 Total Expenses 3,600 Net Income 3,400 36. ‘The entry to close the revenue account includes: A. adebit to Income Summary for RM3,400 B. —_ acredit to Income Summary for RM3,400 C. —_adebit to Income Summary for RM7,000 D. accredit to Income Summary for RM7,000 37. The entry to close the expense accounts includes: A. adebit to Income Summary for RM3,600 B. credit to Rent Expense for RM1,000 C. —acredit to Income Summary for RM3,400 D. _adebit to Wages Expense for RM2,000 38. After the revenue and expense accounts have been closed, the balance in Income Summary will be: A. RMO B. a debit balance of RM3,400 C. _ acredit balance of RM3,400 D. _acredit balance of RM7,000 39. A post-closing trial balance will show: A. only permanent account balances B. only temporary account balances C. zero balances for all accounts D. __ the amount of net income (or loss) for the period 40. Which account has a balance equal to net income immediately before i ‘The Income Summary account The Account Payable account The Net Income account The Owner's Equity account gop41. 42. 43. 44, ‘BKALIOI3 / BUSINESS ACCOUNTING ‘MATRIC NO, Which of the following differences of the accrual basis and cash basis of accounting are TRUE? A. Accrual basis is required by generally accepted accounting principles B. Accrual basis records expenses when incurred. Cash basis records expenses when cash is paid C. Accrual basis records revenue when services are performed. Cash basis records revenue when cash is received D. All of the above are true ‘Two categories of expenses in merchandising companies are: ‘A. operating expenses and financing expenses B. cost of goods sold and financing expenses C. cost of goods sold and operating expenses D. sales and operating expenses Under a perpetual inventory system, purchase of goods is debited to the: A. inventory account B. supplies account C. cost of goods sold account D. purchase account Lie Company sells goods on account for RM14,500 to Ida Company with credit term 2/10, 1/30. The goods sold had cost RM10,000. Which of the following entries should Lie Company make to record this sale if the company uses the perpetual inventory system? Debit(RM) Credit (RM) A. Accounts Receivable 10,000 Sales 10,000 Cost of Goods Sold 14,500 Inventory 14,500 B. Accounts Receivable 14,500 Sales 14,500 C. Accounts Receivable 10,000 Sales 10,000 D. Accounts Receivable 14,500 Sales 14,500 Cost of Goods Sold 10,000 Inventory 10,00045. BKALIO13 / BUSINESS ACCOUNTING MATRIC NO,:_ If a company determines cost of goods sold each time a sale occurs, it: A. uses a combination of the perpetual and periodic inventory systems B. uses a perpetual inventory system C. must have a computer accounting system D. _uses a periodic inventory system Use the following data for Questions 46 to 48. MyGoodfellas Trading has the following information: 46, 47. 48. 49. Net sales 1,000,000 Gross purchases 700,000 Gross profit 400,000 Ending inventory 100,000 Sales return 10,000 Purchases retums 7,000 What is the gross sales amount? A. RM1,007,000 B. —_ RMI,010,000 C. _RMI,100,000 D. _RMI,400,000 ‘What is the net purchases amount? A. RM600,000 B. —_RM690,000 C. _ RM693,000 D. —_RM707,000 ‘What is the cost of goods sold? A. RM300,000 B. —_RM400,000 C. — RM600,000 D. —_RM900,000 Herry Pottery Maker Enterprise purchased goods having a list price of RM36,000, a trade discount of 30%, and a cash discount of 5%. The cash payment to settle the account within the discount period is: A. RM23,400 B. —_RM23,940 C. _RM25,200 D. —_RM34,200 1050. 5 52. 53. 54, BKALIO13 / BUSINESS ACCOUNTING ‘MATRIC NO. : If merchandised sold on account is retumed, the seller may inform the buyer of the reduction on the item by issuing: A. aninvoice B. — areceipt C. a credit note D. —_ adebit note Which of the following is a FALSE statement about a multiple-step income statement? A. Operating expenses are often classified as selling and administrative expenses B. There may be a section for operating assets C. There may be a section for non-operating activities D. There is a section for cost of goods sold Company directors are required to include in the annual report the company’s and its subsidiaries financial statements as mandatoried in the: A. Section 169 (5) Company Act 1965 B. _ International Financial Reporting Standards (IFRS) C. Income Tax Act 1967 D. Bursa Malaysia Listing Requirement The opinion given on the sufficiency of financial records kept by the company in accordance to the stated act and compliance with the approved accounting standards can be found in which of the following report? A. Director’s Report B. —_ Audit Committee’s Report C. Chairman's Statement D. Auditor's Report According to the Financial Reporting Standard 101 (FRS 101): Presentation of Financial Statement, a complete set of financial statements must consist of the following EXCEPT: statement of comprehensive income statement of changes in equity statement of financial position statement of internal control pORP> nH55. 56. 57. 58. 59. BKALI013/ BUSINESS ACCOUNTING MATRIC NO.:_ ‘The Malaysian Accounting Standards Board (MASB) has agreed to the full convergence with the International Financial Reporting Standards (IFRS) effective from: A. 1 January 2010 B. 1 January 2011 C. 1 January 2012 D. 1 January 2013, Information about the accounting policies adopted in preparing the financial statements are explained in the: A. statement of changes in equity B. notes to the financial statements C. statement of cash flows D. corporate governance statement Inventory turnover is calculated by dividing: ‘A. cost of goods sold by the ending inventory B. cost of goods sold by the beginning inventory C. cost of goods sold by the average inventory D. average inventory by cost of goods sold A general rule to use in assessing the average collection period is that: A. it should not exceed 30 days B. _itccan be any length as long as the customer continues to buy goods C. it should not greatly exceed the discount period D. _ it should not greatly exceed the credit term period If a company has acid-test ratio (quick ratio) of 1.2:1, what respective effects will the borrowing of cash by short-term debt and collections of accounts receivable have on the ratio? Short-term borrowing Collection of receivables A Increase No effect B. Increase Increase. ch Decrease No effect D. Decrease Decrease Net sales are RM6,000, beginning total assets are RM2,800, and the asset tumover ratio (ratio of net sales to assets) is 3.0 times. What is the ending total asset balance? A. RM2,000 B. —RM1,200 C. RM2,800 D. — RMI1,600 1261. 62. 63. 64, 65. BKALI013 / BUSINESS ACCOUNTING MATRIC NO. Man Pharmacy had net credit sales of RM16,000 and cost of goods sold of RM12,000 for the year. The average inventory for the year amounted to RM?,000. What is the average number of days to sell the inventory during the year? A. B. c. D. 91 days 61 days 46 days 26 days Assume the following sales data for a company: 2010 RM1I,200,000 2009 RM960,000 2008 RM840,000 2007 RM600,000 If 2007 is the base year, what is the percentage increase in sales from 2007 to 2009? A. B. ic D. 100% 160% 10% 62.5% Financial statements for external users can be described as: A. B. ic D. user-specific general-purpose special-purpose managerial reports Which of the following represents a period cost? PORP > DOB> ‘The vice president of sales’ salary Overhead allocated to the manufacturing operations Labor costs associated with quality control Retirement benefits associated with factory workers ‘manufacturing company reports cost of goods manufactured as a(n): current asset on the balance sheet administrative expense on the income statement, component in the calculation of cost of goods sold on the income statement component of the raw materials inventory on the balance sheet 1366. BKALI013/ BUSINESS ACCOUNTING ‘MATRIC NO, Cost of goods manufactured is calculated as follows: A. B. G D. Beginning work in process + direct materials used + direct labor + manufacturing overhead + ending work in process. Direct materials used + direct labor + manufacturing overhead — beginning work in process + ending work in process. Beginning work in process + direct materials used + direct labor + manufacturing overhead — ending work in process. Direct materials used + direct labor + manufacturing overhead — ending work in process — beginning work in process. Use the following information for Questions 67-68. 67. 68. 69. ‘Raw materials inventory, 1 January RM 20,000 Raw materials inventory, 31 December 40,000 Work in process, | January 18,000 Work in process, 31 December 12,000 Finished goods, | January 40,000 Finished goods, 31 December 32,000 Raw materials purchases 1,000,000 Direct labor 460,000 Factory utilities 150,000 Indirect labor 50,000 Factory depreciation 400,000 Selling and administrative expenses 420,000 Direct materials used are: A B. c. Dz RM1,060,000 RM1,020,000 RM1,000,000 RM980,000 If the direct materials used is RM1,000,000. Total manufacturing costs is equal to: A. B. fe D. RM2,060,000 RM2,054,000 RMI,860,000 RM2,480,000 Given the following data for Syarikat Gemilang, compute (A) total manufacturing costs and (B) costs of goods manufactured: RM Direct materials used 240,000 Beginning work in process 40,000 Direct labor 100,000 Ending work in process 20,000 Manufacturing overhead 300,000 Beginning finished goods 50,000 Operating expenses 350,000 Ending finished goods 30,000 1470. n. nd. TB. 14. BKALI013 / BUSINESS ACCOUNTING MATRIC NO. (a) (B) A. RM620,000 RM660,000 B. —_ RM640,000 RM620,000 C. _RM640,000 RM660,000 D. — RM660,000 RM680,000 Which one of the following does NOT appear on the balance sheet of a manufacturing company? A. Finished goods inventory B. Work in process inventory C. Cost of goods manufactured D. Raw materials inventory A. cost which remains constant per unit at various levels of activity is a: A. variable cost B. fixed cost C. mixed cost D. manufacturing cost Cost behavior analysis is a study of how a firm’s costs: A. relate to competitors’ costs B. relate to price level changes C. response to the changes in the level of business activity D. response to changes in the gross national product The relevant range of activity refers to the: A. geographical areas where the company plans to operate B. activity levels where all costs are curvilinear C. levels of activity over which the company expects to operate D. levels of activity where all costs are constant An increase in the level of activity will have the following effects on unit costs for variable and fixed costs: Unit Variable Cost Unit Fixed Cost A. Increase Decrease B. Remains constant Remains constant C. Decrease Remains constant D. Remains constant Decrease 1515. 16. 1. 78. 79. 80. BKAL1013 / BUSINESS ACCOUNTING MATRIC NO, Which of the following is NOT an underlying assumption of CVP analysis? A. Changes in the activity are the only factors that affect costs B, Costs classifications are reasonably accurate C. Beginning inventory is larger than ending inventory D. Sales mix is constant Fixed costs are RM900,000 and the contribution margin per unit is RM1SO, What is the break-even point? A. RM2,250,000 B. —_ RM6,000,000 C. 2,250 units D. 6,000 units If a company had a contribution margin of RM200,000 and a contribution margin ratio of 40%, what is the total variable costs? A. RM300,000 B. — RMI20,000 C. _RM500,000 D. —_RM80,000 A company sells a product which has a sale price per unit of RMS, variable costs per unit of RM3 and total fixed costs of RM100,000. The number of units that the company must sell to achieve break even is: A. 50,000 units B. 20,000 units C. 200,000 units D. 33,333 units Johan Enterprise sells its product at RM20 per unit, variable cost RM12 per unit, and the total fixed costs are RM160,000, how many units must be sold to earn net income of RM80,000? A. 45,000 units B. 30,000 units C. 24,000 units D. 18,000 units Kaman Sdn Bhd has fixed costs of RM600,000 and variable costs are 40% of sales. ‘What are the required sales if the company desires net income of RM60,000? A. RMI,100,000 B. —_RM1,000,000 C. —_RMI,650,000 D. —_RMI,500,000 16BKALIO13 / BUSINESS ACCOUNTING ‘MATRIC NO. 81. Operating budget includes all of the following EXCEPT: A. B. c. D. purchase budget sales budget sales forecast budget administrative budget 82. The operating budget process usually ends with: A B. (es D. sales budget selling and administrative budget income statement budget balance sheet budget Questions 83 and 84 are based on the following data: Syarikat Pelangi estimates to sell their product at RM20 per unit. Its estimated sales quantities for September to November 2011 are as follows: September 1,500 units October 2,000 units November 2,500 units December 3,800 units Advertising expense is expected to be 5% from the following month sales while other expenses are administrative expense RM25,000 and depreciation expense RM15,000 for each month. 83. The total expected sales for the 3 months are: A. B. c. D. RMI120,000 RM196,000 RM6,000 RM9,800 84. The total selling and administrative expenses for October are: com> RM42,500 RM42,000 RM41,500 RM43,800 85. Which of the following BEST describes some of the benefits related to the preparation and use of budgets? A B. Cc. D. Business activities are better coordinate Managers become aware of other managers’ plans Employees may become cost conscious and try to conserve resources All of the above 786. 87. 88. 89, BKALI013 / BUSINESS ACCOUNTING ‘MATRIC NO, When preparing a projected income statement, which of the following budget is firstly prepared? A. Financial budget B. Sales budget C. Selling and administrative budget D. —_Costof goods sold budget The budget that reflects in the effect of fluctuation in the level of activity into a various budgets is known as: A. B. ci D. static budget flexible budget operational budget cash budget Schabat Company Bhd expects RM630,000 of credit sales in November and RM800,000 in December. Historically, a company collects 70% of its sales in the month of sales and 30% in the following month. How much cash does Sahabat Company Bhd expect to collect in December? A B. cc! D. RM800,000 RMS560,000 RM755,000 RM1,015,000 The estimated inventory at the beginning of the year is RM45,000, and the desired inventory at the end of the year is RM60,000. The estimated cost of goods is RM500,000. What is the total purchases indicated in the purchases budget? A B. c. D. RMA85,000 RMS515,000 RMS560,000 RM605,000 ‘The most effective budget figures are developed: yore from the “top-down” from the “bottom-up” following a participatory process solely by the budget committee all of the above 1891. 92. 93. 95. BKALI013 / BUSINESS ACCOUNTING MATRIC NO, A caleulator store purchased RM7,000 of calculator in September. The beginning inventory for September are RM3,000, while at the end of September the inventory are expected to be RM2,000. What is the budgeted cost of goods sold for the month of September? A. RMS,000 B. —_RM6,000 C.—_RM7,000 D. —_RM8,000 ‘When preparing the cash budget, all of the following should be considered EXCEPT: A. depreciation expense B. cash payment to suppliers C. total cash receipts D. _ interest on financing Abe Company reported the following information for a year 2011: September | October _| November Budgeted sales_| RM620,000 | RM580,000 | RM720,000 How much cash will Abc Company receive in November if all the sales are on credit and the company policy for credit sales is 50% collected in the month of sales and the balance is in the following month sales? A. RM290,000 B. —_ RM650,000 C. _RM600,000 D. —_RMS580,000 Which of the following budget is considered as the most important financial budget? ‘A. Sales forecast budget B. Capital budget C. Cash budget D. Master budget The difference between the actual cost incurred and the standard cost is called the: flexible variance price variance cost variance controllable variance pomp 19BKALIO13 / BUSINESS ACCOUNTING MATRIC NO. Use the following data for Question 96 to 99. Standard Actual Direct Labor 5,625 @RMI2.50/unit 5,850 @ RM12.25/unit 96. 97. 98, 99. 100. Direct Material 37,500 @RMI3/unit 37,125 @RM12.60/unit The direct labor rate variance is: A. RMI,462.50 Favorable B. —_ RM1,462.50 Unfavorable C. — RMI,406.25 Unfavorable D. — RM1,406.25 Favorable ‘The direct labor time variance is: A. RM2,756.25 Favorable B. —_RM2,756.20 Unfavorable C. _ RM2,812.50 Unfavorable D. —_RM2,812.50 Favorable The direct material price variance is: A. RMI14,850 Favorable B. — RM14,850 Unfavorable C. —_RM15,000 Unfavorable D. —_ RMIS5,000 Favorable ‘The direct material quantity variance is: A. RM4,725 Favorable B. —__RM4,725 Unfavorable C. _ RM4,875 Unfavorable D. __RM4,875 Favorable Meera Sdn Bhd has a normal budgeted capacity of 100 machine hours. Meera Sdn Bhd produced 400 units. Each unit requires a standard 0.2 machine hour to complete. The standard fixed factory overhead is RM22.00 per hour, determined at normal capacity. The fixed factory overhead volume variance is: A. RM440 Favorable B. _ RM440 Unfavorable C. —_ RM1,760 Unfavorable D. —__RMI1,760 Favorable END OF QUESTIONS 20