Which one of the following groups of workers would be classified as indirect labour?
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1 .The standard direct labour cost for a product is 2 hours per unit at USD12 per hour. In May 2011, when 100,000 units were produced, the company paid direct wages of USD13 per hour for the 205,000 hours worked.What was the direct labour rate variance for May 2011?
A USD200,000 adverse B USD205,000 favourable C USD205,000 adverse D USD265,000 adverse
2 .Which of following may cause an adverse efficiency variance for labour?
A Higher wage rates B Improved training C Machinery downtime D Unauthorised absenteeism
3 .Which of the following is normally associated with an adverse sales variance?
A A slight downward change in demand following a major price increase B A slight upwards change in demand following a major price reduction C Higher sales volume D Higher selling prices
4 .The purchase price of an item of inventory is USD25 per unit. In each three-month period the usage of the item is 20,000 units. The annual holding costs associated with one unit equate to 6% of its purchase price. The cost of placing an order for the item is USD20.What is the Economic Order Quantity (EOQ) for the inventory item to the nearest whole unit?
A 730 B 894 C 1,461 D 1,633
5 .Which department would normally be responsible for completing a standard purchase requisition for goods in a service organisation?
A The buying (purchasing) department B The department that requires the goods C The goods inwards department D The accounting department staff
7 .Which one of the following would be classified as indirect labour?
A Assembly workers on a car production line B Bricklayers in a house building company C Machinists in a factory producing clothes D Forklift truck drivers in the stores of an engineering company
8 .The following statements refer to situations occurring in Process Q of an organisation which operates a series of consecutive processes:(i) Direct labour is working at below the agreed productivity level.(ii) A machine breakdown has occurred.(iii) Direct labour is waiting for work to be completed in a previous process.Which of these situations could give rise to idle time?
A (i) and (ii) only B (i) and (iii) only C (ii) and (iii) only D (i), (ii) and (iii)
9 .What is the “overtime premium”?
A The additional amount paid for hours worked in excess of the basic working hours B The additional payment over and above the normal hourly rate for hours worked in excess of the basic working hours C The benefit to the company of not having to pay salaried staff for working at weekends D The amoun...
10 .A company operates a premium bonus system by which employees receive a bonus of 75% of the time saved compared with a standard time allowance (at the normal hourly rate). Details relating to employee X are as follows:What is the bonus payable to employee X (to the nearest USD)?
A USD35 B USD47 C USD70 D USD77
