Certified Management Accountant (CMA) Exam – Sample

The following information is for the next three questions: ChemKing uses a standard costing system in the manufacture of its single product. The 35,000 units of raw material in inventory were purchased for $105,000, and 2 units of raw materials are required to produce 1 unit of final product. In November, the company produced 12,000 units of product. The standard cost for material allowed for the output was $60,000, and there was an unfavorable quantity variance of $2,500. ChemKing�s standard price for one unit of material is:

The units of material used to produce November output totaled:

The materials price variance for the units used in November was:

Garland Company uses a standard cost system. The standard for each finished unit of product allows for 3 pounds of plastic at $0.72 per pound. During December, Garland bought 4,500 pounds of plastic at $0.75 per pound, and used 4,100 pounds in the production of 1,300 finished units of product. What is the materials price variance for the month of December?

Price variances and efficiency variances can be key to the performance measurement within a company. In evaluating performance, all of the following can cause a materials efficiency variance except the:

An unfavorable direct labor efficiency variance could be caused by a(n):

A company set the total budgeted direct labor cost at $75,000 for the month for producing 5,000 units. The following standard cost, stated in terms of direct labor hours (DLH), was used to develop the budget for direct labor cost: 1.25 DLH x $12.00/DLH = $15.00/unit produced The actual operating results for the month were as follows: Actual units produced 5,200 Actual direct labor hours worked 6,600 Actual direct labor cost $77,220 The direct labor efficiency variance for the month would be:

The following information is for the next two questions: Azat Corporation produces ketchup. Azat mixes two varieties of tomatoes: a locally grown variety to provide excellent taste and an imported variety to provide a richer color. The standard costs and inputs for a 200-kg batch of ketchup are as follows: Tomato Type Standard Quantity in Kg. Standard Cost per Kg Total Cost Local 200 $0.75 $150 Imported 100 $0.90 90 Total 300 $240 A total of 110 batches were produced during the current period. The quantities actually purchased and used during the current period as well as the prices paid are shown below: Tomato Type Quantity in Kg. Actual Cost per Kg Total Cost Local 21,000 $0.65 $13,650 Imported 14,000 $0.95 13,300 Total 35,000 $26,950 What is the materials mix variance for the current period?

What is the materials yield variance for the current period?

Variable overhead is applied on the basis of standard direct labor hours. If the direct labor efficiency variance is unfavorable, the variable overhead efficiency variance will be: