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Download Actual 2024 AQA A-LEVEL ACCOUNTING 7127/2 Paper 2 Merged Question Paper + Mark Scheme Act and more Exams Accounting in PDF only on Docsity!
Actual 2024 AQA A-LEVEL ACCOUNTING 7127/2 Paper 2 Merged Question Paper + Mark Scheme AQA Please write clearly in block capitals. Centre number Candidate number Surname Forename(s) Candidate signature | declare this is my own work. A-level ACCOUNTING Paper 2 Accounting for analysis and decision-making Monday 3 June 2024 Morning Time allowed: 3 hours Materials Ree For this paper you must have: eee * acalculator. Section Mark Instructions A e Use black ink or black ball-point pen. B Fillin the boxes at the top of this page. c « Answer all questions. TOTAL e You must answer the questions in the spaces provided. Do not write outside the box around each page or on blank pages. e If you need extra space for your answer(s), use the lined pages at the end of this book. Write the question number against your answer(s). ¢ Do all rough work in this answer book. Cross through any work you do not want to be marked. Information « The marks for each question are shown in brackets. e The maximum mark for this paper is 120. JuN247127201 IB/M/Jun24/G4004/V5, 7127/2 1 Do not write . outside the Section A box Answer all questions in this section. For multiple-choice questions only one answer per question is allowed. For each question completely fill in the circle alongside the appropriate answer. CORRECT METHOD [eo] WRONG METHODS [e[°Js|/4] If you want to change your answer you must cross out your original answer as shown. Dx If you wish to return to an answer previously crossed out, ring the answer you now wish to select as shown. A business buys inventory on credit. Which book of prime entry is used to record this transaction? [1 mark] A Cash book [=e] B_ General journal Le] C_ Purchases journal Le] D Purchases returns journal [eS] What is the impact on the statement of financial position of receiving a recovered debt that had previously been written off as irrecoverable? [1 mark] A Decrease capital, decrease current assets B_ Decrease capital, increase current assets C_ Increase capital, decrease current assets [a] [2 (9) D_ Increase capital, increase current assets 02 IB/M/Jun24/7127/2 2 04 Product Q has the following costs per unit: Materials 4 metres at £2 per metre Labour 1.5 hours at £12 per hour Overheads £4 per labour hour Product Q has a selling price of total cost plus a 10% mark up. What is the selling price of Product Q? A £28.60 B £32.00 C £33.00 D £35.20 [o} (2) fo) [o) Which is the formula to calculate dividend cover? Dividend per share Market price per share Market price per share , 1400 Dividend per share Ordinary share dividends paid Profit after interest and tax Profit after interest and tax Ordinary share dividends paid o @& of Do not write outside the box [1 mark] [1 mark] IB/M/Jun24/7127/2 4 INN Do not write outside the A manufacturer provides the following information: box Total fixed costs £360 000 Unit variable cost £20 Unit selling price £60 Forecast output 20 000 units What is the margin of safety in units? [1 mark] A 9000 [Le] B 11000 [e] Cc 14000 Le] D 15500 [=] Which is the formula to calculate the rate of inventory turnover? [1 mark] A Average inventory Cost of sales [2] B Average inventory , 400 Cost of sales Cost of sales Average inventory Costofsales , 400 Average inventory of Turn over > IB/M/Jun24/7127/2 5 Do not write outside the {1[4] Explain two benefits of using incremental budgeting. Box [6 marks] Benefit 1 Benefit 2 Turn over for the next question Turn over > INI IB/M/Jun24/7127/2 7 Do not write outside the [1]2] Zhou runs a retail business. He provides the following information taken from the al income statement for the year ended 30 April 2024. £ Revenue (12 600 units at £16) 201 600 Purchases (13 100 units at £6.80) 89 080 Opening inventory (2 900 units at £6.80) 19 720 Closing inventory (3 400 units at £6.80) 23 120 Additional information used in planning the budgeted income statement for the year ended 30 April 2025: 1. Toremain competitive Zhou plans to reduce the selling price of each unit by 25%. This is expected to increase the number of units sold by 20%. 2. Zhou intends to switch suppliers. He has found a company willing to supply goods for 25% less than his current supplier. However, there will be a delivery cost of £0.15 for each unit purchased. 3. The number of units held at the end of the year is expected to reduce by 20%. Closing inventory should be valued at the most recent purchase price. Prepare the budgeted trading section of the income statement for the year ended 30 April 2025. [10 marks] Workings 08 IB/M/Jun24/7127/2 8 10 10 forecasted information: Naomi is preparing her labour budget for August. She has provided the following Production 500 units Labour hours per unit 45 minutes Standard labour rate £12 per hour After allowing for holidays only 200 labour hours are available at the standard rate. Any additional hours used will have to be paid at a premium of 40% extra per hour. Prepare the labour budget for August. Show clearly the number of hours required and the total labour cost. [4 marks] Do not write outside the box 30 IB/M/Jun24/7127/2 10 11 Do not write outside the box Turn over for the next section DO NOT WRITE/ON THIS PAGE ANSWER IN THE/SPACES PROVIDED Turn over > INIA IB/M/Jun24/7127/2 11 13 Do not write outside the Labour rate variance box Labour efficiency variance [1[4}.[2] Prepare a reconciliation of the budgeted cost to actual cost. [4 marks] Turn over > INIA IB/M/Jun24/7127/2 13 14 Do not write outside the box [1[4}.[3 } The directors of Rixmead Ltd believe the variances are linked. Assess whether the directors are correct, using your answers from Question 14.1. [6 marks] 14 IB/MiJun24/7127/2 14 16 16 Books Online is a digital business selling audiobooks. The directors are considering a technology upgrade to improve customer experience and have provided the following information in relation to the project: £ Cost of hardware 2 380 000 Delivery and installation of hardware 45 000 Software (annual cost) 120 000 Staff training (annual cost) 50 000 Fixed costs per year excluding depreciation 80 000 Purchase, delivery and installation of the hardware is expected at the end of 2024 and the technology will be implemented in 2025. The hardware will be depreciated over three years using the straight line method. The project will last three years, after which a further upgrade in technology will be needed. The hardware will then be sold for an estimated £400 000. The software will be used from 2025 and must be updated each year. The staff must be trained on each update. Forecast sales 2025 2026 2027 Units 500 000 12% increase 12% increase The percentage increase is based on the previous year’s sales in units. Throughout the 3 years the selling price per book is £6.50, and the variable cost per book is £2.80. Books Online uses a cost of capital of 14%. The discount factors are: Year Discount factor 0 1.000 1 0.877 2 0.769 3 0.675 IB/M/Jun24/7127/2 Do not write outside the box 16 17 Do not write outside the {1[5].[14] Calculate the net present value of the project, clearly showing the cash inflows Box and outflows. [10 marks] Turn over > 17 IB/M/Jun24/7127/2 17 19 Do not write outside the [4[5].[3 ] Assess whether the decision to invest in the new technology should be based only on box the payback and net present value calculations. Use your answers from Questions 15.1 and 15.2. [6 marks] 40 Turn over > 9 IB/M/Jun24/7127/2 19 20 Section C Answer all questions in this section. 20 Mel runs a business which makes bracelets. The market for bracelets is very competitive. She plans to start making and selling earrings to help widen her product range and increase her customer base. Mel is considering what price to sell her new earrings for. She is considering using either marginal or absorption costing to set the selling price of the earrings. She has not decided what percentage would be appropriate to use when setting the price. Her competitors use an average mark up of 130% on the marginal cost. The following information is for the next year. The forecast is based on the production and sales of 10 000 pairs of earrings. Extract of financial information Raw materials per unit £4 Direct labour per unit £9 Fixed costs per annum £190 000 The fixed costs will be absorbed on a labour hour basis. However, Mel is aware that the earrings will be largely made by machines rather than labour. The fixed costs include marketing costs of £80 000 which would only be incurred in year one. The remaining fixed costs are for renting additional factory space to produce the earrings. Mel has used her raw material supplier for many years and has established a good working relationship. Raw material prices are fixed for the next twelve months with this supplier. A pay rise has already been factored into her direct labour costs. Mel is aware her rates of pay are only slightly above the current minimum wage. The sales manager has suggested they use marginal costing as it allows flexibility when setting prices. This could allow him to continue making one-off deals with larger customers. However, the finance manager would like to ensure that all costs are covered. IB/M/Jun24/7127/2 Do not write outside the box 20 
