[Faizatu]

That’s exactly what I did!

[Faizatu]

What is everyone’s thought on the MCQ question regarding life cycle costing? I have never heard of the word “attrition” in my life.

[Faizatu]

The total cost for flexed budget is $1,005,000.

You have to first of all get the cost per unit for matetial, labour and fixed overheads using the budgeted sales units. Then you multiply each cost per unit with the flexed sales units and sum them up to get the total cost.

Budgeted sales: 20,000 units
Cost per unit:
Material 120,000/20,000= $6
Labour 200,000/20,000= $10
Fixed o/h 350,000/20,000= $17.5

Flexed units: 30,000 units
Material 6*30,000= $180,000
Labour 10*30,000= $300,000
Fixed o/h $17.5*30,000= $525,000
Total cost $1,005,000

Can some one else confirm this answer if it’s correct? I’m just attempting, not sure if I am correct but that’s how I would answer the question.

[Faizatu]

The F2 paper was ok. I have mixed feelings about it. The section A was better compared to, section B. I found it a bit tough. I hope everyone does well.

[Author]

Posts