[pavanpavanmehta]

Thank you very much John Moffat.

[pavanpavanmehta]

Thanks Mike

[pavanpavanmehta]

Thanks Jubae

[pavanpavanmehta]

ok thank you.

[pavanpavanmehta]

Thank you

[pavanpavanmehta]

THANK YOU.

[pavanpavanmehta]

ok THANK YOU.

[pavanpavanmehta]

ok THANK YOU.

[pavanpavanmehta]

ok THANK YOU.

[pavanpavanmehta]

ok THANK YOU.

[pavanpavanmehta]

Thank you so much John Moffat.
We got our answers of F6 questions.
Thank you once again.

[pavanpavanmehta]

Thank you very much.

[pavanpavanmehta]

Thank you so much.

[pavanpavanmehta]

Yes I had not reply.Please chase up the F6 tutor. 🙂
Thank you.

[pavanpavanmehta]

For calculation of sales price variance you have to calculate for actual production.
So actual price-standard price(actual production)
225-240(8000)
In a flexed budget the figure is 2016000 are for a standard production.
So you have to calculate for actual production to get sales price variance.

[pavanpavanmehta]

Sorry no need of answer.
I got the answer.
We have to calculate on the basis of total income so rate will be change.
Right?
Thank you.

[pavanpavanmehta]

Thank you

[pavanpavanmehta]

OK tHANK YOU

[pavanpavanmehta]

Thank you

[pavanpavanmehta]

Thank you.

[pavanpavanmehta]

Thank you so much.
Yes you are right,here is a typing mistake in a book.
I put this question under activity based costing because somehow
I always face a problem to start a new topic so I always write in a someone column.
Thank you so much. 🙂

[pavanpavanmehta]

In a chapter of transfer pricing
Euro products general manager is choosing which of two plants NEWCASTLE or
SHEFFIELD, to use for the production of a new product of a new product.
Both have the same capacity and an expected life of four years,with different capital costs and expected net cash flows.The following information is provided.
Newcastle Sheffield
initial capital investment 4800000 3900000
net cash flows (before tax)
2006 1800000 1950000
2007 1800000 1650000
2008 1800000 1125000
2009 1800000 750000
It is assumed that the plant will be used from 1 jan.2004 and both plants have negligible residual value.General manager is expected to generate a before tax return on his investment in excess of 14% p.a which he is currently achieving. As his bonus is linked to his performance,he will not take up a project with a return of less than 14%.For calculating returns,divisional assets are valued at net book values at the beginning of the year.depreciation is charged on a straight line basis.
I have to calculate Residual income and ROI.
For that could you please tell me how can I calculate depreciation and opening WDV of asset?

[pavanpavanmehta]

Thank you so much. It is very helpful.

[pavanpavanmehta]

in a chapter 13 example 1 for sales volume variance you have taken
standard profit per unit.in a gtg guide one of the examples they have taken
standard price per unit.
standard, unit, price, cost, actual, unit, price, cost,
A 2000 4 3.5 2200 4.10 3.7
B 2500 5 4 2000 5.25 4.3
C 1750 6 5.25 2000 5.75 5.75

sales volume variance=A= 2200-2000X4=800
B= 2000-2500X5=2500
C=2000-1750X6=1150

Can you please tell me why they have taken sales price and you sales profit?

[pavanpavanmehta]

in a chapter 13 example 1 you have taken fixed cost different in original and flexed
budget as per unit production.
in a gtg guide one of the examples they have taken fixed same in originial and flexed budget.
budgeted production and sales-5000 unit
actual produced and sold-5400 unit
fixed production overhead 6 hours @1=6
they have taken 30,000 fixed overhead in both original and flexed budget.
can you please tell why is it difference?

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