[rasel9045]

Thanks a lot…..

[rasel9045]

Prancer Co uses standard costing to control its costs and revenues.A standard cost card for its only product is given below together with a standard cost operating statement for last month:

Standard cost card
$per unit
Selling price $per unit(150)
Direct materials 2kg@$25/kg $per unit(50)
Direct labour 3 hours@$10 per hour $per unit(30)
Fixed overhead 2 hrs@$10 per hr $per unit(20)
profit -50

Standard cost operating statement
$
Budgeted profit -600000
Sales volume variance -60000(a)
Standard profit on actuals sales -540000
Sales price variance -20000(f)
560000
Production cost variances:

Material price -7500(f)
Material usage -8000(a)
labour rate -2000(a)
Labour efficiency -500(f)
Fixed overhead expenditure -7000(a)
Fixed overhead volume -2000(a)
Total-19000(a) -8000(f)
11000(a)
actual profit -549000
Question1.How much production was less or more than budgeted?

Question02.Materials caused the biggest cost variance,where a decision to pay (less or more than) standard price resulted in the company using (320 kg more than original,320kg less than original,320kg more than flexed,320kg less than flexed) budget.

[rasel9045]

Thanks.But i have some problem to solve few questions in extra MTQs.Would you solve those questions?

[rasel9045]

When we open F2 paper website page or click on it in opentution.com…we see
these followings first:

F2-Management Accounting (Full Exam) | F2 (Full Exam) Answers

F2-Management Accounting (Extra MTQs) | F2 (Extra MTQs) Answers

Paper F2 Examiner’s Reports

F2 Examiner’s approach interview

Computer-based exams – preparing for the experience

I am talking about one of these options.I hope you can understand now.

[rasel9045]

Yeah.I have the answer.but i don’t understand that.Answer was like that:(96000/12)+159000-5000=162000kg….How $96000 came?

[rasel9045]

No.That’s why asked you.It did the math only.But did not explain how?

[rasel9045]

Thanks a lot.Actually that was my answer.But exam kit answer was different.That’s why i had to be sure if i was wrong or right.

[rasel9045]

thanks.

[rasel9045]

thanks a lot …

[rasel9045]

Thanks…

[rasel9045]

This wrong answer was in answer sheet.By the way thanks.

[rasel9045]

Thanks John..:)

[rasel9045]

Sorry.But i did not know this method.That’s why i could not solve it.

[rasel9045]

ok.Thanks

[rasel9045]

In lecture video of Absorption Costing Part 2.Chapter 8-Profit Statement-Absorption Costing,Example-2.In Hourly Absorption Rate formula.You wrote it.That confused me.

[rasel9045]

Thanks.And sorry that was my mistake….:)

[rasel9045]

thanks sir…..:)

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