[sagarm]

oh got it. don’t how i ignored this point. Thankyou so much

[sagarm]

yes, this qs is from acca study hub quizz – ch 15.

my doubt is still not clear – when we are talking about what evan co should pay each year, then why not we take annual cash figure? why avg daily cash figure.
we are calculating interest on annually percentage. why it is not pro rated – adjusted to 2 day ? my doubt may be sound silly but i’m confused.

[sagarm]

.

[sagarm]

thank so much sir for clearing my doubt and here i got one more doubt

Q-15—–Wig’s monthly absorption costing variance analysis report includes a sales mix variance, which indicates the effect on profit of actual sales mix differing from the budgeted sales mix. The following data is available:

Product RR Product SS
$ $
Selling price 12 11
Less: Variable cost 6 2
Fixed cost 2 3
(8) (5)
Standard net profit per unit 4 6

July sales (units)
Budget 3,000 6,000
Actual 2,000 8,000

What is the favourable sales mix variance for July (to the nearest $)?

this is also from pre june mock–
sir my answer is
Budg Q actual q AQ*SP SM SALES MIX VAIRANCE
3000 2000 3333.333333 4 5333.333333
6000 8000 6666.666667 6 -8000
= 9000 = 10000 =10000 = -2666.666667

Thats my answer but according to them it should be 275….how its possible sir?

[sagarm]

then sir what this mean
answer given back
Note 1- it is equally as acceptable to have treated the heat and power costs as variable and include them in the above. It will not have changed the outcome and is entirely acceptable interpretation of the scenario.

[sagarm]

Yes I have watched… It’s just my mistake how I didn’t Focus on the last line.. thankyou for explaining.

[sagarm]

It’s from Kaplan Exam kit sec b (10mark ) question.
Budgeting Topic

[In study text it was written that master budget include ( statement of P&L , cash flow , SOFP )
And in SOFP – asset and liability both come. ]

So because of this reason I marked this true but the answer given back is False

[sagarm]

Yes I have watched lectures on this but here I think you misunderstood me.
My doubt was they are asking the value of (Ch)which is 0.5% of average inventory value. So why you take 0.5% of $1?
I know Ch is holding cost of one inventory but they are confusing by writing the average inventory value. I hope I explained you my doubt clearly.

[sagarm]

But in the question they are asking average inventory value ?

[sagarm]

Yes I’m watching your lectures and thankyou for providing free lectures and also thankyou for clearing this doubt

[sagarm]

Thankyou one more thing if wip is total direct labour cost then what is bank and production overhead in labour a/c

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