CIMA Exam CIMAPRO19-P01-1 Topic 3 Question 81 Discussion

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

Question #: 81
Topic #: 3

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:

Prepare a statement that reconciles the budgeted contribution with the actual contribution for October. Your statement should show the variances in as much detail as possible.

What was the actual contribution for October?

A$ 1,324,000

B$ 1,414,000

C$ 1,594,000

D$ 1,494,000

E$ 1,198,000

Show Suggested Answer

Suggested Answer: B

References:

by Olive at Feb 13, 2024, 01:33 PM

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Tess

7 months ago

I calculated the actual contribution to be $1,414,000. This is based on the variance analysis provided in the question.

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Tammy

7 months ago

I believe the actual contribution for October can be calculated based on the variances in the standard costing system and JIT purchasing.

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Reena

7 months ago

Yes, we need to reconcile the budgeted contribution with the actual contribution.

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Mona

7 months ago

I think the question is asking us to prepare a statement that shows the variances in contribution for October.

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