CIMAPRO19-P01-1 Exam - Topic 9 Question 55 Discussion

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

Question #: 55
Topic #: 9

A company produces a product that requires two materials, Material A and Material B. Details of the material quantities and costs for August are given in the table below.

Budgeted and actual output of the product for August was 12,000 units.

The material mix variance for August is:

A$ 1, 540 Favourable

B$ 1, 540 Adverse

C$ 1, 288 Favourable

D$ 1, 540 Adverse

Show Suggested Answer

Suggested Answer: A

References:

by Lai at Jul 25, 2022, 08:04 AM

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Audra

10 months ago

I’m surprised it’s that high, thought it would be lower!

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Veda

10 months ago

Definitely looks like an adverse variance to me.

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Willodean

10 months ago

Wait, how can it be favourable with those numbers?

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William

11 months ago

I think it’s $1,540 Favourable, right?

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Lamonica

11 months ago

The material mix variance is crucial for understanding cost efficiency.

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Antonette

11 months ago

I’m a bit confused about whether to classify the variance as favorable or adverse. I wish I had reviewed that part more thoroughly.

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Casey

11 months ago

This question feels similar to one we did in class, where we had to analyze the cost differences. I hope I can recall the steps correctly.

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Felicia

11 months ago

I think the answer might be $1,540 favorable, but I need to double-check how we handled the actual vs. budgeted quantities.

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Thad

11 months ago

I remember we practiced calculating material mix variances, but I'm not sure if I got the formulas right for this one.

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Casie

11 months ago

Wait, I'm a bit confused. The options don't seem to match the values in the matrix. I'll need to double-check my understanding of sensitivity and how to calculate it from this data.

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Ahmed

11 months ago

I've got this one! The answer is A and D - anyone with write access to the planning unit, and the owner of the planning unit. Feels good to be confident on a question like this.

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Herminia

11 months ago

I'm pretty confident that B and C are correct, but I'm not sure about the other options. I'll make sure to read the question thoroughly before answering.

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