CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 74 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam

Question #: 74
Topic #: 1

The standard labour hours for all products manufactured by a company include an allowance for idle time. Idle time is budgeted to be 5% of total hours worked. Each unit of product G requires an input of 9.5 active labour hours. The labour rate is $12 per hour.

The standard labour cost shown on the standard cost card for one unit of product G will be

A$10.00

B$114.00

C$119.70

D$120.00

Show Suggested Answer

Suggested Answer: B

by Lai at Jul 05, 2024, 07:06 AM

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Edward

4 days ago

I'm not sure about this one. Can someone explain why the answer is C) $119.70?

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Gianna

8 days ago

I agree with Sherill. The idle time is already included in the standard labour cost, so it should be C) $119.70.

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Sherill

10 days ago

I think the answer is C) $119.70.

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