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A calculator may be used for this paper
Thursday 15 June 2017 – AfternoonA2 GCE ACCOUNTINGF014/01 Management Accounting
INSTRUCTIONS TO CANDIDATES• Write your name, centre number and candidate number in the boxes above. Please write clearly
and in capital letters.• Use black ink. HB pencil may be used for graphs and diagrams only.• The information required to answer Questions 1–4 is contained within the Resource Booklet.• Answer all the questions.• Read each question carefully. Make sure you know what you have to do before starting your
answer.• You must show the calculations leading to your answers.• Write your answer to each question in the space provided. If additional space is required, you should
use the lined page(s) at the end of this booklet. The question number(s) must be clearly shown.• Do not write in the barcodes.
INFORMATION FOR CANDIDATES• The number of marks is given in brackets [ ] at the end of each question or part question.• The total number of marks for this paper is 120.• The quality of your written communication will be taken into account in marking your answers to
the two sub-questions marked with an asterisk (*).• In one of these questions, the focus will be on your ability to present numerical information legibly
and in an appropriate accounting format. In the other, you will be assessed on the legibility and style of writing, the clarity and coherence of your arguments and the accuracy of your spelling, punctuation and grammar.
• This document consists of 24 pages. Any blank pages are indicated.
* F 0 1 4 0 1 *
OCR is an exempt Charity Turn over© OCR 2017 [T/500/7725]DC (RCL (JDA)) 138054/2
Candidates answer on the Question Paper.
OCR supplied materials:• Resource Booklet (F014/01/RB)
Other materials required:• A calculator may be used
Duration: 2 hours
*6876684776*
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PLEASE DO NOT WRITE ON THIS PAGE
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1 REQUIRED
(a) The following variances from standard for the batch of 50 units:
• material price variances• material usage variances• labour rate variances• labour efficiency variances [16]
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(b) A reconciliation statement for the budgeted (standard) cost and the actual cost for the batch of 50 units. [6]
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(c) Discuss two possible reasons for each of the materials and labour variances.
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(d) Discuss two benefits of a standard costing system.
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2 REQUIRED
(a)* The Cash Budget for each of the three months ending 31 July 2017, 31 August 2017 and 30 September 2017. [27]
Please show your workings to question 2(a) below.
Working Box
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(b) Discuss two behavioural aspects of budgeting to the managers of a business.
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3 REQUIRED
(a) A statement to show the maximum profit Sycamore Ltd could make in its next financial year under Option 1. Show the contribution per unit for each product. [13]
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(b) A statement to show the maximum profit Sycamore Ltd could make in its next financial year under Option 2. Show the contribution per unit for each product.
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(c)* Evaluate both options for Sycamore Ltd. [11]
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4 REQUIRED
(a) The Contract Account for the year ended 30 April 2017.
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(b) Discuss why the customer has negotiated a 15% retention on the payment made for the work certified.
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(c) Explain how a loss on a long term contract should be dealt with in the accounts of a construction company, stating the concept involved.
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ADDITIONAL ANSWER SPACE
If additional space is required, you should use the following lined page(s). The question number(s) must be clearly shown in the margin(s).
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Oxford Cambridge and RSA
Copyright Information
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