ACCA Foundation
MA1
Management Information
September 2021 to June 2022
Progress Test – Answers
To gain maximum benefit, do not refer to these answers
until you have completed the progress test questions and
submitted them for marking.
ACCA FOUNDATION M A1 : MA NAGEMEN T INFORMATION
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2
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PROGRESS TES T ANSWERS
1
C
The statement of financial position, the cash flow statement and the income statement
would normally be produced by the financial accountant.
2
D
Alternatives A, B and C are all examples of cost units. A factory might be classified as a cost
centre.
3
C
The best example of a semi‐variable cost is electricity, since there is usually a cost for the
use of the service which is fixed and a further variable cost based on usage.
4
A
2,000/2,500 × 100% = 80%
5
B
Total fixed overhead cost
= $10,000 + $5,000 + $14,000 + $6,000
= $35,000
Budgeted production
= 5,000 units
Fixed overhead cost per unit =
$35,000
5,000
= $7.00
6
B
Usage = 6,000 × 2.5 =
15,000
Opening inventory
(1,800)
Closing inventory
Purchases =
7
900
14,100
A
Production = 4,000 + 200 =
Usage = 4,200 × 3 =
Decrease in inventory
Purchases =
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4,200
12,600
(400)
12,200
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ACCA FOUNDATION M A1 : MA NAGEMEN T INFORMATION
8
C
6,000 – 500 = 5,500
Usage = 5,500 × 1.2 =
6,600
Increase in inventory =
Purchases =
9
900
7,500
D
3,000/300 = 10 units per standard hour
2,500/10 = 250 actual units per standard hour
250/200 × 100% = 125%
10
C
5,000/2,500 = 2 units per standard hour
5,500 units/2 units = 2,750 hours
2,750/2,500 × 100% = 110.0%
11
C
Closing WIP = 200 units @ 70% complete = 140 equivalent units
Labour cost = 140 × 2.00 = $280
12
D
54,000/246,000 × 100% = 21.95%
13
D
14
D
15
A
16
A
17
C
18
B
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PROGRESS TES T ANSWERS
19
A
Production overheads per unit = $30.60/3 = $10.20
20
Prime cost per unit
$15.30
Production overahead per unit
$10.20
Total production cost per unit
$25.50
B
Using MC inventory is valued at the variable production cost per unit
Direct materials
Direct labour
Variable production overhead
Total variable cost
$
20,000
16,300
14,700
51,000
Inventory value = 1,400 units × 51,000/5,000 = $14,280
21
B
Materials: EU = 500 × 100% = 500
Conversion costs: EU = 500 × 40% = 200
22
D
23
C
A purchase originates with a requisition for goods, by either the stores department or a
user department. The buying department negotiates purchase terms and issues a purchase
order to send to the supplier. The supplier processes the order and delivers the goods.
A delivery note is provided with the goods when delivered. The stores department then
produces its own document to record the goods received (the goods received note), which
includes additional details such as the code for the item of inventory. The supplier sends
the invoice when the goods are delivered. Invoices received from suppliers are called
purchase invoices.
When the invoice has been checked and confirmed as correct, a cheque requisition might
be prepared, for a senior manager to sign, asking the relevant section of the accounts
department to prepare a cheque and send it to the supplier.
24
A
The company is keen to identify underperforming regions. Its best method of analysing
profitability is therefore by area.
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ACCA FOUNDATION M A1 : MA NAGEMEN T INFORMATION
25
A
Total production
202
Rejected items
5
Good output
26
Pay for the first 100 units (× $0.25)
25.00
Pay for the next 97 units (× $0.30)
29.10
Employee’s total earnings
54.10
A
Excel would
(2 × 2) + 3 = 7
27
197
multiply
before
adding,
effectively
performing
the
function
as
C
$246,000/$416,000 = 0.59
28
D
This is the order in which the symbols will be interpreted when entered into a spreadsheet
formula. Multiplication and division precede addition and subtraction.
29
B
Issues will have been made out of the most recent purchases:
30 June: 500 × 2.00 + 1,000 × 2.10 = 3,100
30
B
Closing inventory of 1,500 units will consist of:
Open:
500 × 2.00
=
1,000
4 June:
1,000 × 2.10
=
2,100
Total
31
3,100
D
AVCO = (500 × 2.00 + 1,000 × 2.10 + 1,500 × 2.20)/3,000 = 6,400/3,000 = 2.13
32
6
D
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PROGRESS TES T ANSWERS
33
D
kg
100
Materials
Labour
Overheads
–––––
100
–––––
34
$
200 Output
400 Normal loss
300
–––––
900
–––––
kg
90
10
$
880
20
–––––
100
–––––
–––––
900
–––––
D
By definition.
35
C
Purchases = usage + increase in inventory = (15,000 × 3) + 1,400 = 46,400
36
37
B
Error
Description
#DIV/0!
This occurs where we have tried to divide by zero or a blank cell
#NAME?
This occurs when we use a name that Excel doesn’t recognise. This is
common in incorrectly spelled function names
#NUM!
This occurs when you place an invalid argument in a function
#REF!
This occurs when a formula uses an invalid cell reference
#VALUE!
This occurs when we attempt to use an incorrect data type
C
Absorption rates are calculated in advance and use budgeted figures.
$260,000/10,000 hours = $26.00 per hour
38
C
The change in stock is 5,000 units, the difference between marginal and absorption costing
is the fixed production overhead allocated to one unit, so the difference in profit would be:
5,000 × $3 = $15,000.
39
C
40
A
Wage rate = 4,500/500 = $9 per hour
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ACCA FOUNDATION M A1 : MA NAGEMEN T INFORMATION
41
D
Email and notes are used for informal communications.
Letters are used for external communication.
42
C
61.6/156.9 × 360 = 141.3
43
B
44
D
45
B
46
D
There must be three parts to the custom format when we want to show zeros as a special
word or character – one for positive numbers, one for negative numbers and one for zeros.
So this rules out options C. To show zeros as a word the third part must be in inverted
commas. Option D is the correct answer.
47
C
SMU, at the start of the formula is mis‐spelt (it should be SUM) and is not a proper formula.
The spreadsheet would not recognise the name of the formula.
48
A
49
D
50
B
It would not be possible to select the hidden row as it is hidden. A user must select the
rows above and below the hidden row or rows.
8
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