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ACCA F5 December 2012 Question 5 Activity Based Costing
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Dear John,
Under (b), activity-based costing, total overhead costs for R is $363808, not $363788 as shown in this lecture. The arithmetic is wrong, but I appreciate that it doesn’t make much difference as regards the overheads per unit! 馃檪
Thanks – you are correct (but I am not going to re-record it for just $20 馃檪 )
Dear John,
Under (b), activity-based costing, total overhead costs for S is $513812, not $513712 as shown in this lecture. Is it due to rounding or due to addition mistake?
It is rounding (and is not relevant anyway because we need the cost per unit and the rounding will not affect that).
As per lecture In (C) (ii) ; third point M/C Hours And ABC Give similar results for product R. But as per calculation under ABC the profit for product R in retail division is $ 393,327 and under M/C Hours, profit for Product R in retail division is $349,563 . The difference is $ 43,764. Then how the profit is the same. Please kindly explain.
The only reason that total profits will be different is because of inventory valuations.
The total overheads expense remains the same whichever way it is charged between products.
there is a new lecture now on line
https://opentuition.com/acca/f5/f5-revision-variances-june-2012-question-4/
Yes – they will be coming soon 馃檪
THANKSSSSS A LLLOOOOOTTTT!!!!:-)
could u please (when u have the time) upload the solutions of Q1,Q.3,Q.4 of past exam papers for JUNE 2012?