CIMA Exam CIMAPRO19-P01-1 Topic 8 Question 103 Discussion

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

Question #: 103
Topic #: 8

TP makes wedding cakes that are sold to specialist retail outlets which decorate the cakes according to the customers' specific requirements. The standard cost per unit of its most popular cake is as follows:

The general market prices at the time of purchase for Ingredient A and Ingredient B were $23 per kg and $20 per kg respectively. TP operates a JIT purchasing system for ingredients and a JIT production system; therefore, there was no inventory during the period.

What was the material yieldvariance?

AThe material yield variance was $98500 A

BThe material yield variance was $175500 A

CThe material yield variance was $155000 A

DThe material yield variance was $175 000 A

EThe material yield variance was $155500 A

Show Suggested Answer

Suggested Answer: D

by Louvenia at Nov 16, 2024, 10:53 PM

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Sheridan

3 days ago

I'm not sure, but I think the material yield variance was $175 000 A based on the market prices of the ingredients.

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Hollis

7 days ago

Hmm, I'm not entirely sure about this one. The information provided seems a bit tricky to parse.

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Chaya

18 days ago

I believe it was $155000 A because the actual cost of ingredients was lower than the standard cost.

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Frankie

21 days ago

This question looks pretty straightforward. I think the answer is B.

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Francene

1 days ago

That makes sense, the material yield variance is calculated by taking the standard cost of material used minus the actual cost of material used multiplied by the actual quantity used.

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Maybelle

10 days ago

I agree, the answer is B) The material yield variance was $175500 A

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Pearlie

23 days ago

I think the material yield variance was $175500 A.

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