Materials and labour: past paper questions
Real questions on materials and labour
The newest 20 of 57 written questions. Open one to see it on the real paper.
- 9706/21 · October/November 2025 · Q4g[7]
Advise the directors whether or not they should purchase the direct materials from the overseas supplier. Justify your answer by discussing both financial and non-financial factors.
See it on the paper → - 9706/42 · October/November 2025 · Q2d(i)[4]
the total direct material cost
See it on the paper → - 9706/42 · October/November 2025 · Q2d(ii)[4]
the total direct labour cost. Additional information Direct material is supplied by one local supplier who dominates the local market. Because of the adverse direct material variance, the directors are thinking of switching to an overseas supplier who charges a higher price.
See it on the paper → - 9706/42 · October/November 2025 · Q2e[7]
Advise the directors whether or not they should switch to the overseas supplier. Justify your answer.
See it on the paper → - 9706/43 · May/June 2025 · Q2a[1]
Calculate the number of units expected to be in inventory at 31 May.
See it on the paper → - 9706/43 · May/June 2025 · Q2b[7]
Calculate the total amount shown in the cash budget in March for expenditure, other than payments to suppliers. Workings: Additional information Terri is concerned about the expected bank overdrafts shown in the cash budget. She is considering two options. Option 1 Terri could have a special promotion for the month of...
See it on the paper → - 9706/43 · May/June 2025 · Q2c(i)[2]
April
See it on the paper → - 9706/43 · May/June 2025 · Q2c(ii)[3]
May.
See it on the paper → - 9706/21 · October/November 2024 · Q4a(i)[1]
cost centre
See it on the paper → - 9706/21 · October/November 2024 · Q4a(ii)[1]
cost unit
See it on the paper → - 9706/21 · October/November 2024 · Q4a(iii)[1]
direct cost
See it on the paper → - 9706/31 · October/November 2024 · Q3a[2]
Explain one reason why the rate of factory profit had changed between 2022 and 2023.
See it on the paper → - 9706/42 · October/November 2024 · Q1e[4]
Explain the likely reasons for the favourable direct labour variance of $1980 with reference to the analysis of its two sub-variances. Additional information The directors are aware of an upward trend in the direct material price. To keep the current profit level, they have two options. Option 1 Modify the existing pro...
See it on the paper → - 9706/42 · October/November 2024 · Q1f[7]
Advise the directors which option they should choose. Justify your answer. (f)
See it on the paper → - 9706/31 · May/June 2024 · Q1a[4]
Identify the costs that may be included in the inventory cost of work in progress.
See it on the paper → - 9706/43 · May/June 2024 · Q2a(ii)[3]
the unit selling price which would have given the same actual total contribution in April 2024 as the standard total contribution for the month
See it on the paper → - 9706/43 · May/June 2024 · Q2a(iii)[3]
the actual total quantity of direct materials used (in kilos)
See it on the paper → - 9706/43 · May/June 2024 · Q2a(iv)[2]
the actual price paid per kilo of direct material ,
See it on the paper → - 9706/43 · May/June 2024 · Q2a(v)[3]
the actual hours used by direct labour per unit.
See it on the paper → - 9706/22 · October/November 2023 · Q4e[5]
Prepare a statement to show the total selling price that Andreas should quote to the customer in order to achieve a 30% gross profit margin on the order. Additional information Having received the quotation from Andreas, the customer has stated that he will commit to a regular monthly order of 100 of the special bicycl...
See it on the paper →
What examiners said
Candidates required to prepare a statement to show the total quoted selling price to achieve a 30% gross profit margin on the special order. The question was generally poorly answered. Many candidates did not make use of the figures calculated in the previous task and many failed to include the machinery department and assembly department overheads in their calculation.
— Examiner report, October/November 2023, 9706/22 Q4(e) (Cambridge)
Candidates were told that the customer would make a regular order of one hundred units each month if the trader were to offer a 10% discount on the quoted price and allow two months’ credit. Candidates were asked to advice whether or not these terms should be accepted. Whilst some candidates offered no response, those who did often successfully referenced the issues of more profit whilst drawing a...
— Examiner report, October/November 2023, 9706/22 Q4(f) (Cambridge)
Required candidates to explain one difference between a direct cost and an indirect cost. As was the case in part (a), several responses were very vague and often only stated a characteristic of one of the systems making no attempt to explain the difference between the two.
— Examiner report, October/November 2023, 9706/23 Q4(b) (Cambridge)
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