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OAR = 0.972
Absorbed Ohd – Actual Ohd = -3500
Absorbed Ohd – (Budgeted Ohd)*120% = -3500
OAR*Actual Activity – (OAR*Budgeted Activity)*120% = -3500
OAR*10,800 – OAR*12,200*120% = -3500
OAR*10,800 – OAR*14,400 = -3500
OAR*(10,800-14,400) = -3500
OAR*(-3600) = -3500
OAR = -3500/-3600
OAR = 0.972You really need to watch Sir John Moffat’s free lectures on Consolidation. All the calculations and adjustments regarding unrealised profit are explained in those lectures.
As far as these 2 questions are concerned, you’re mixing up Cost with Profit. In question 1, the figure of $78,571 is the COST, not the PROFIT.
The profit is $110,000-$78571=$31,429.
Since 50% of this inventory is still remaining, so 50% of that profit is also unrealised. The amount of unrealised profit will be
$31,429*50%=$15,715Similarly in question 2, the figure of $40,000 is COST. The profit is
$50,000-$40,000=$10,000Errors 1,2 & 4 will require adjustments in the Control Account while error 3 will be adjusted in list of balances.
1) The entry of receiving the refund should have been,
Dr Cash $140
Cr Payables Control Account $140But instead, the Control Account was DEBITED. For correction, we’ll simply make a credit entry with $240.
2) Same treatment as above. Control Account will be debited with $620.
4) To record Discounts Received, we’ll simply debit the control account with $276.
Control Account Balance = $37564+$240-$620-$276 = $36908
I’m only doing the reapportionment part here. You should be able to do the rest.
Reapportionment of Maintenance Overheads:
Total = 8450
To PD1 = 8450*75% = 6338
To PD2 = 8450*20% = 1690
To Stores = 8450*5% = 422Reapportionment of Stores Overheads:
Total = 6300+422 = 6722
To PD1 = 6722*60% = 4033
To PD2 = 6722*40% = 2689In my opinion, it doesn’t make any difference. What makes the difference is the result being updated on your myACCA. The normal timing for updating results is 72 hours. If the portal is updated, you’ll receive an email. After that you should verify by logging into myACCA.
If you still have any queries, its better to contact your local ACCA office.
@lofty said:
thank you very much
but still how did u came about the 1 unit or you just assumesThe question has mentioned that the cost information is for an activity level of 500 units.
DM/unit = 2,500/500 = $5
DL/unit = 5,000/500 = $10
POH:
Variable = $1,000*50% = $500 = $1/unit
Fixed = $500
Selling Costs:
Variable = $1250*80% = $1,000 = $2/unit
Fixed = $250Selling Price/unit = $17,500/500 = $35
For 1,000 units:
DMC = $5*1,000 = $5000
DLC = $10*1,000 = $10,000
Variable POH = $1*1,000 = $1,000
Fixed POH = $500
Variable Selling Costs = $2*1,000 = $2,000
Fixed Selling Costs = $250
Total Cost = $18,750
Sales Revenue = $35*1,000 = $35,000
Profit = $16,250The tutor has clarified in the following topic that FA 2016 is NOT relevant for June attempt and is replaced by FA 2017. Have a look.
The tutor has answered recently in this topic
https://opentuition.com/topic/doubt-on-remaning-lectures/
The lectures are in the making and will be made available as they’ll be recorded. Kindly use the available ones along with the lecture notes.
@mspedro1 said:
$11,970 and $12,350 are not options in the answer choices.Can you explain what the correct answer is and how you get to it.
The options given are wrong. The correct answer is $11,970.
Balance as per bank statement = $13,400
Less: Unpresented Cheques = ($2,400)
Add: Uncleared Cheques = $1,000
Corrected Balance as per cash book = $12,000This should be the carried down balance. So it should be on the credit side of T account. Now, the bank charges and dishonoured cheqe should be on the credit side of cash book so it should be added to this balance.
Credit side total = $12,000+$300+$50 = $12,350
The receipt of $190 should be debited twice for correction. So the debit entry would be of $380, and if we subtract this amount from credit side total we will get our brought down total, which is the balance before correction.
Balance b/d = $12,350-$380 = $11970
The labour cost to employer is the TOTAL COST that he has to bear/pay. In your example, the total cost would be employee’s gross pay + employer’s NIC.
Employee’s gross wages are the sum of net pay, PAYE and NIC.
In short,T.C = Gross wages + Employer’s NIC = 308+31 = 329
@namah1 said:
20% from sc1 to sc2= 122000×20%=24400
So sc2 = 96600+24400=12100035% from sc1 to pc1 (122000×35%=42700) and 30% from sc2 to pc1 (121000×30%=36300)
45% from sc1 to pc2 (122000×45%=54900) and 70% from sc2 to pc2 (121000×70%=84700)
So pc2= 54900+84700=139600
The question asks for Total overheads of PC2 after reapportionment. Shouldn’t the answer be this one:
$520,800+$122,000*45%+$121,000*70% = $660,400
Please don’t use capital letters. Using capital letters is implied as shouting.
For NPV, kindly watch Sir John Moffat’s lectures on F2. They are totally free. You can find them in F2 section.
There must be an answer to this question in the same book that you found the question. Kindly refer to that answer and then ask whatever is in the answer that you don’t understand.
Budgeted Sales = 20,000 units
Contribution from these units = $180,000
Contribution/unit = $180,000/20,000 = $9V.C/unit = Selling Price – Contribution/unit = $24-$9 = $15
A simple solution to this and many other differences that you’ll surely find in future would be to choose one of the resources. Either use BPP Study Text or Opentuition Notes. Since there are so many differences in these 2, you will keep getting confused.
But, whichever option you choose, you MUST buy a revision kit from BPP or Kaplan. Thats the most important thing for preparation.
Read the chapters in the same sequence as in book except for Macro & Micro econnomics. I believe they should be studied in the end, so that you may be able to recall them easily.
@manjeet1210 said:
thank you so much for your suggestion. However, may I know if these lectures are suitable for march 2018 exam? do they update lectures every year? Kindly please reply me. thank you.The lectures are up-to-date. They are reviewed every sitting and updated as per the change in syllabus.
A pass is a pass. It means only one thing: you don’t have to look back at it again. That should be your aim, not to look back and keep going forward.
Be happy you overcame it, no matter how. Now onwards and upwards!
Normal wages of direct workers are always Direct Cost under normal circumstances. However, if there’s overtime payment, then we classify the wages of overtime into basic rate & overtime premium. The basic rate is Direct cost (as i said above) while the premium is then declared either Direct cost or Production overhead (not overhead production).
Consider this, in your example, if there were no Overtime premium and the direct workers were only paid $10 for the overtime hours, how would we account for these?
The answer is, as i said, these are basic rates and will definitely be included in Direct Cost.
Now lets say there was an overtime premium of $5. How should we account for these?
Answer is, we’ll have to consider the reason behind happening of overtime hours. If the reason is that a customer specifically ordered us to complete his/her work earlier and we have to work overtime for that, then he/she is the reason behind this overtime work and he should be the one paying for them. Thats why we’ll charge him/her the amount.
If, on the other hand, the reason is internal i.e. the company is unable to complete its production in the given time and has to cover it via overtime, then company is the reason behind that overtime and it should pay for it (or bear it, whatever).I can’t explain better than Sir John Moffat. Kindly refer to his free F2 lectures.
@obigodly said:
Would like to know the question style f4 English CBE.https://specimen.accaglobal.com/ASSIGNMENTS/F4_ENG/
This is the link to F4 (Eng) specimen exam available on ACCA’s website. Its like a sample paper. Check it out.
I’ll advice you to chose either English variant or Global Variant, as there are free lectures and notes for these 2 variants on Opentuition.
Otherwise, if you’re determined to go with Malaysian variant, then kindly buy a study text along with a Revision Kit from one of ACCA’s approved publishers like BPP & Kaplan.F4 is on-demand CBE, we can choose whichever variant we want. I don’t know why there weren’t other variants available in your country. This is quite strange.