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ACCA F2 / FIA FMA lectures
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May 18, 2016 at 3:37 pm
Sir, I will like to know the cost per unit for both desk and chairs if overhead is to be absorbed per materials. My calculation gave me $36.14 and $20.76 respectively. I will like to know if my answer is correct. Thanks
John Moffat says
May 18, 2016 at 8:06 pm
But why do you want to know? The question says that they are to be absorbed on labour hours!
June 26, 2016 at 6:47 pm
There is a problem facing students downloading this lecture notes. We can listen but checking on chapters according to the lectures are not correct. Accounting for overheads chapter 4 is not actually 7 . I suggest a review by the technical support and officials involve. We need an update please. This lectures are so fantastic that every serious student we certainly have an average of 50%- 60% even more when seat for an exams. Download is actually blank .
June 27, 2016 at 8:20 am
Accounting for overheads is chapter 7 in the free lecture notes, and is listed as chapter 7 in the list of free lectures, so I don’t really know what your problem is. Neither do I understand what you mean by ‘download is actually blank’.
The lectures and notes are all up to date for the current syllabus and so I have no idea what update you need.
May 10, 2016 at 9:28 am
Sir, to understand this chapter. Is it neceesary to take inventory control chapter from your website or by just taking cost classification chapter from your website would be enough to understand this chapter completely…
May 10, 2016 at 9:56 am
The lectures all refer to chapters in the lecture notes, and they should all be studied in chapter order.
November 23, 2015 at 2:06 pm
is it the only way, what i mean is, would it be right if we calculate the overhead cost per unit instead of overhead per hour?what makes the difference?
November 23, 2015 at 2:12 pm
If you watch all of the lectures for this chapter, then this is all explained.
If there is only one product then overhead per unit would be the same as overhead per hour.
However, if (for example) you have one product that takes 1 hour per unit to produce, and another product that takes 2 hours per unit to produce, then it is only sensible to charge the second product with twice as much overheads per unit that the first product.
We achieve this by calculating a cost per hour, and then a cost per unit by multiplying the cost per hour by the number of hours per unit.
December 14, 2015 at 2:10 pm
Thank you very much sir, i watched all of your lectures for F2 they are pretty awesome and thanks for the explanation above, your the best!
December 14, 2015 at 2:30 pm
Thank you very much for your comment 🙂
March 11, 2015 at 11:44 pm
I’ve attempted to do the test on this chapter, but can’t quite get the right answer to question 3. I get $10 and the answer is $13. My workings are the following. Total Overhead costs for Product X = 88,000 divide that by total hours worked on Product X (8000 *2.5) answer is 4.4, same thing for product Y (96,000/16000) = 6. Therefore, total overhead cost per unit is 10. What am I missing? Thanks in advance for the help
March 12, 2015 at 7:18 am
I think you are referring to test question 4 (not 3).
Look back at the way I answered example 3 in the lecture, because it is exactly the same idea.
You need to work out an absorption rate for each of the two departments separately.
There are no products X and Y – they are departments. The products are L and M.
So the absorption rate for department X is $88,000 / (( 8,000 x 3.0) + (8,000 x 2.5)) = $2 per hour.
You need to do the same for department Y.
Then you can calculate the cost per unit for M as 2.5 hours at $2, plus 2 hours at the absorption rate for department Y.
March 12, 2015 at 6:58 pm
Yes, it was indeed question 4, and the Products X and Y that I was referring to were supposed to be L and M, apologies for the confusion. I got the right answer now. My mistake was to calculate the overhead costs by product (i.e. picking the numbers horizontally) instead of by department (then multiplying by the number of hours it takes for each product). Is it safe to say that that is the correct approach every time? i.e. to calculate departmental absorption cost first?
March 13, 2015 at 7:48 am
Yes – you are correct 🙂
BELLO OLAIDE TITUS says
February 2, 2015 at 6:35 pm
I could view it before December diet, but it all started few days to exams
February 2, 2015 at 8:15 pm
But you have not answered my question. Are you able to view the lectures on computer? Is all access not working, or just access on your phone?
February 2, 2015 at 5:09 pm
Sir, I used to see your lecture videos on my android phone but, suddenly the browser just stopped working and up till now, I have not been able to see the videos again. I also downloaded several browsers but no result. Please what can I do? Or have you restricted people from Nigeria from viewing your videos?
February 2, 2015 at 5:13 pm
We do not restrict any countries (although countries might restrict us!).
Is it only the phone (can you view the lectures on a computer)?
June 19, 2016 at 8:36 am
I also can’t view the lectures until march all were accessible.
June 19, 2016 at 3:19 pm
Nothing has changed on the site, so if you could view lectures before, and You cannot now, the problem at your end, Your Internet provider/ or your device,..
February 2, 2015 at 2:46 pm
i want to ask you that i looked many questions on under/over absorption in bpp kit but i didnt see any lectures on it and also in course notes so please tell me is it in course of f2 in 2015 because i have old edition book of bpp
February 2, 2015 at 5:02 pm
Under/over absorption is part of absorption costing and is dealt with in that lecture.
It is in the current syllabus.
(Although you should get a current edition of the Revision Kit because the format of the exam has changed.)
February 3, 2015 at 7:27 am
February 2, 2015 at 2:29 pm
i want to ask you that i look many questions on under/over absorption in bpp kit but i didnt see any lectures on it and also in course notes……so please tel me is it in course or not because i have a book of bpp 2011 edition….
October 18, 2014 at 11:01 am
Hello sir John, I really enjoyed the way you teach Pls where can I found the complete part of this example 3. You didn’t finish it in the video.
October 18, 2014 at 12:56 pm
This lecture says ‘part (a)’, so now watch part (b) 🙂
January 29, 2015 at 5:08 pm
I like you very much and your lectures as well :)))))) Thank you .
January 29, 2015 at 5:24 pm
Thank you very much 🙂
Kerri - Ann says
August 5, 2014 at 7:01 pm
I used the production to do my overhead absorption…… 3:2 Ratio
Desk = 700000*3/5 = 420000/30000 = $14.00
Chair= 700000*2/5 = 280000/20000= $14.00
I know that this is not correct based on your explanation. But can you explain yes we are using the production hours and not the production units?
August 6, 2014 at 5:38 am
In real life you can deal with the overheads in whichever way you think more sensible.
In exams you are told how to absorb them, and this questions says in the last line that they are to be absorbed on the basis of labour hours.
The logic is that if each desk takes 4 times as long as a chair in the factory, then it would seem only fair that they should be charged with 4 times as much in factory overheads.
(Had the question said to absorb on a unit basis, then your answer would be correct. Although you made it too complicated – all you would need to do is divide total overheads by total unit – $700000/50000 = $14 per unit)
Max Huelber says
July 17, 2014 at 6:25 pm
i’d like to know where i can find in here the financial accounting subject??
July 17, 2014 at 6:33 pm
It depends which paper you want.
There are three financial accounting papers – they are F3, F7 and P2 (F3 is the basic – P2 is the most advanced)
You can find links to then from the main ACCA page.
February 12, 2014 at 9:30 am
please sir where i can find accounting for labour and materials ?
February 12, 2014 at 1:04 pm
Accounting for labour is chapter 6 in the Course Notes.
There is no separate chapter for materials – the important part is covered in chapter 5, inventory control.
February 13, 2014 at 2:10 pm
February 13, 2014 at 4:30 pm
Sir moffat, I got a personal question. I already passed my F3 ( 26 th dec 2013 ). But on my examination status on acca global it said that F3 financial accounting to be attempted. Why it didn’t said that i pass. I got 54 % and was taking private tuition with a tutor.
February 13, 2014 at 4:41 pm
I assume that you took the computer based exam and that it was at a licensed centre?
The firm of tutors that administered the exam should have uploaded the result to the ACCA and it should then have appeared on your account within 72 hours.
Did you receive a provision notification of your result immediately you finished the exam?
You need to contact the place where you took the exam and ask what has happened. If they do not sort it out then you need to email the ACCA as soon as possible.
February 13, 2014 at 5:20 pm
Yes i took a CBE exam and it was a licensed centre. I received an email from the admin of acca global on 27 th dec confirming that i passed my F3 but it still don’t appear on my examination status. I hope that i won’t have to take the exam again
February 13, 2014 at 7:48 pm
You certainly will not have to take the exam again.
However I would email the ACCA and ask them why it does not appear on your status.
February 15, 2014 at 10:02 am
done ! thank you sir 😀
February 8, 2014 at 9:54 pm
Regarding example 2:
I know this is wrong, but WHY couldnt you work out FIXED COSTS fro desks and chairs as follows:
LBR HRS for desks = 30 000 x 4 = 120 000
And so Fixed costs per desk = 700 000/120000 = 5.83
LBR HRS for chairs = 20 000 x 1 = 20 000
And so Fixed costs per chair = 700 000/20 000 = 35
February 8, 2014 at 10:08 pm
But then the total fixed costs would add up to 1.4M !!!
February 6, 2014 at 5:10 am
Theory from this chapter is not important for the exam ?
February 6, 2014 at 5:26 am
There is no theory involved in this.
October 15, 2013 at 9:58 pm
Awesome lecture Mr.John Moffat you explain so well, may god bless you……
October 15, 2013 at 1:53 am
thank you johnmoffat. I appreciate.God’s blessings
October 15, 2013 at 4:35 am
You are welcome 🙂
October 14, 2013 at 5:59 pm
Hi would appreciate help with his Question
The following Data relates to a company’s Overhead Cost
time: 3 yrs ;OutPut (unit) 2000 : O/H Cost 8,800: Price Index 132
Current year: Output (unit) 5000: O/H Cost 31000: Price Index 164
Using the High Low Technique. what is the Variable cost per unit ( to the nearest $0.01) express in the current year.
October 14, 2013 at 6:11 pm
What you need to do is restate the ‘3 years’ (I assume you mean three years ago) in current year prices.
To do this, you take the cost in the question (8800) and multiply it by 164/132.
When you have done this, you can use the normal high/low technique and the variable cost that you calculate will be in current year prices.
May 16, 2013 at 3:00 pm
Yeah I do love this site. Thank for everything. The way you explain is very sensible. 🙂
May 14, 2013 at 11:20 am
please where can i find accounting for labour????
May 14, 2013 at 4:07 pm
You can find a chapter on it in the course notes. The chapter should be understandable without the need for a lecture.
May 15, 2013 at 10:16 am
March 4, 2013 at 12:22 pm
Hello i dont understand at 5:10 Why exactly do we divide, i dont get the theroy side to it
March 4, 2013 at 1:01 pm
We are trying to calculate the cost of 1 desk. If it costs $700,000 to make 50,000 units, then the cost of each unit is $700,000 / 50,000. There is no theory to it 🙂
March 4, 2013 at 3:26 pm
Ahh, Okay Thank You 🙂 I sometimes over think and complicate things – Thank You sir! :):D
February 26, 2013 at 11:28 am
rubaiyat amir says
January 17, 2013 at 9:15 pm
great job guys…. these site is just awesome….
January 8, 2013 at 7:24 am
which acca textbooks or materials are you using to teach ?? i have BPP acca books. that’s why asking . thanks a ton for this site and help . 😀
January 9, 2013 at 6:39 am
We use our Course Notes – see the link just above the lecture 🙂
June 16, 2013 at 5:36 pm
i have bpp too . but i think its similar to it !
dear sir is the theory important too??
June 16, 2013 at 6:09 pm
All notes will be similar because of the topic 🙂
Yes – the theory is important. About 50% of the paper F5 exam is writing, not calculations.
That is why it is discussed in the lecture 🙂
June 19, 2013 at 10:42 am
December 7, 2012 at 11:34 am
grt lecture…..where are these classes held at UK
i would like to join…………….
December 7, 2012 at 2:31 pm
@tgk4, Sorry – we do not hold classes in the UK
December 7, 2012 at 3:22 pm
@johnmoffat, just an enquiry , where is the class then conducted that i see in videos……
November 26, 2012 at 7:43 pm
This lecture actually gives a lot of explanation that didn’t think about while reading
October 28, 2012 at 5:23 pm
i’ve been trying to get this absorption rate concept since two weeks. Now that i’ve listened to these lectures, it is cleared to me pretty much. the best thing about these online lectures you can listen to them as much as you want. God bless to the lecturer.
October 13, 2012 at 11:24 pm
Thank you so much such a great teacher.
September 26, 2012 at 1:37 pm
Thanks OT, that is absolutely fantastic!
August 19, 2012 at 3:08 pm
I find very hard to view the lecture
August 19, 2012 at 9:12 am
I find it very hard t????O????? view/watch the video lecture,pl??????A????se some one help with how t????O????? go about this
August 19, 2012 at 10:17 am
@holorunloseyi, I find it very hard to understand what you are trying to say.
if you have problems visit the support page: http://opentuition.com/support/
August 16, 2012 at 8:12 pm
Love this site only sorry that the videos are not downloadable so that I can always have them with me when commuting to and from work daily. My hour journey to and fro would be well utlised.
June 28, 2012 at 10:51 am
is there anything wrong with this website?I cant access the lectures its not even starting please help
April 19, 2012 at 11:47 am
Thankyou for ur videos. I can access to all video expect this video. This video says server not found. Could you plz fix it as soon as possible….
April 19, 2012 at 1:14 pm
@vinukmathews, Try to log out and log in or use different broweser. It works fine for me.
March 21, 2012 at 3:51 pm
sick presentation! mashallah keep it up opentuition 🙂
March 19, 2012 at 6:54 pm
March 9, 2012 at 11:54 am
March 7, 2012 at 4:52 pm
i also have a sound problem. on the other videos its ok, its on overhead that i have the video but not the sound.
would appreciate yr help
March 2, 2012 at 5:15 pm
please i could not hear this lecture on video is working but voice is stop. check your videos are they updated
March 2, 2012 at 10:02 pm
Video is fine
Problem is with your pc or internet
February 24, 2012 at 3:39 pm
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my god you are fucking repected
i respect you man!!!!!!!!!!!! frankly speaking!!!!!!!
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may god shower his blessing on this site
i love you n every member that has contributed in making this site possible
September 26, 2012 at 1:35 pm
@ryanpie, you seem to be speaking sense but at a professional level, your choice of words have intoxicated what you mean to say.
December 30, 2011 at 6:00 pm
God bless this site.
December 14, 2011 at 1:42 pm
fantastic lecture very easy to understand
December 11, 2011 at 3:21 am
I am from Pakistan, and we have generally a concept that british pronounciation of English is pretty much difficult to understand. I am pretty much amazed with the respected teacher that he made every word clear more than the tutors made in our language here. Further more the way the reacher teaches, i feel no need to consult with text book so far. Thanks to you
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