PMACCA Paper PM exam was - March 2021 Exam - Instant Poll and comments

rahul6342 wrote:I think the material usage planning variance was the trips were increased from 150 to 170 per month by the board of directors and the manager was NOT part of the board so this was out of his control . So 20 trips * 2 tonnes per trip = 40 tonnes at $40 per tonne = 1600 Adverse is what I got

What was your operating usage variance? Because total usage variance should be 600A: (340-355) x $40 = -15 x $40 = $600A

I got a question under mix variance.

aytashi wrote:

legendary wrote:Material price planning variance = 1,775 Adv Material price operating variance= 710 Fav<br>Material usage planning variance = 0 (because I could not find any revised usage figure)<br>Material usage operating variance= 600 Adv

Yeah. I got one that was confusing.

So what was your total material usage variance then?

aytashi wrote:

simk wrote:

aytashi wrote:This is for students who did not attend in March session.

Sorry but how did you calculate 136/52 to be 34/13?? The ratio is 2.62:1 which would make sense as Liability reduced by 48% and assets reduced by 15% so the ratio would go up accordingly.

aytashi wrote:simk wrote:Did anyone have the veggie pot question? They had asked us to calculate the cost gap and had given the cost per batch and the selling price. I read the situation multiple times but just couldn’t figure out how many units were in each batch (to be able to calculate cost per unit). What did you all do?

I remember calculating the target cost like this. Knowing the $2 is the max comp 1 can charge and they operate with 20% margin, the max comp 2 would sell was £1.60, therefore for the supplier (comp 2) to earn the 15% markup on cost the max cost must be no more than 1.60x100/115= 1.39

Did anyone get FitzGerald and moon in section C ?

Hi, In the question concerning coal I have calculated the below variances as someone stated above: Material price planning variance = 1,775 Adv Material price operating variance= 710 Fav Material usage planning variance = 1600 Adv Material usage operating variance= 600 Adv It gives the total adverse variance of 3,265, which is correct as in the budgeted coal cost was 12,000 and actual was 15,265.

qwert443 wrote:Hi, In the question concerning coal I have calculated the below variances as someone stated above:

I Have got the same answers...!

legendary wrote:

rahul6342 wrote:I think the material usage planning variance was the trips were increased from 150 to 170 per month by the board of directors and the manager was NOT part of the board so this was out of his control . So 20 trips * 2 tonnes per trip = 40 tonnes at $40 per tonne = 1600 Adverse is what I got

My total usage variance was 1000 A, Planning 1600A and operational 600F..

qwert443 wrote:Hi, In the question concerning coal I have calculated the below variances as someone stated above:

Exactly , that’s how I double checked .. and in discussion gave the credit to manager for saving $110F total of both operational variance

In regards to the exam it was ok, but we need laptops better than Old version computer devices Our generation is more familiar to laptops

aytashi wrote:I have another MCQ question, which I couldn’t calculate. If someone did answer this question please share how you calculated it. I got confused because I didn’t know how to get budgeted number of units. Here is the question:

I got this question. It was so confusing and I took a lot of time trying to find the answer. Finally I chose 240 (A) which is the material usage variance I guess. Because I remember I came across this type of question when I was doing past papers and the answer was the material usage variance.

namah1 wrote:

aytashi wrote:simk wrote:Did anyone have the veggie pot question? They had asked us to calculate the cost gap and had given the cost per batch and the selling price. I read the situation multiple times but just couldn’t figure out how many units were in each batch (to be able to calculate cost per unit). What did you all do?

Both companies using mark up on cost right? Not margin

Does anyone remember the answer of Section B risk question related to Maximax and maximin. I remember selecting a hotspot type - Project 1 for 1st option and Project 2 for option 2. I hope option 1 was Maximax.

Anybody got a question on calculating ROI and RI for two divisions?

yeah 1.39 is the target cost for actual sales. But the question was to calculate the gap. That is concerning me, because I understand that the option I selected was not what was asked

rashard wrote:

aytashi wrote:I have another MCQ question, which I couldn’t calculate. If someone did answer this question please share how you calculated it. I got confused because I didn’t know how to get budgeted number of units. Here is the question:

At some point I just decided to calculate mix variance using the formula (materials usage - yield variances. ) but still couldn't get somewhere, because both usage and mix variances use budgeted number of units. how did you calculate usage variance?

rashard wrote:

namah1 wrote:

aytashi wrote:simk wrote:Did anyone have the veggie pot question? They had asked us to calculate the cost gap and had given the cost per batch and the selling price. I read the situation multiple times but just couldn’t figure out how many units were in each batch (to be able to calculate cost per unit). What did you all do?

no Company 1 used 20% profit margin, and the second one used mark-up

Kevin.shah wrote:Does anyone remember the answer of Section B risk question related to Maximax and maximin.

for maximax you simply select the highest number in the table. don't need to calculate EV. And for maximin you compare the smallest profits (or contributions) of each project and select the highest one.

rashard wrote:Anybody got a question on calculating ROI and RI for two divisions?

OMG that was so easy and tricky at the same time. One division had higher ROI than target, and another one had RI higher than it's target. I think the main point was to distinguish the 2 in terms of assessing the performance of the manager or division. I remember I selected division west

Yeah that's what I got too. East didn't satisfy both of the metrics, so no bonus for them. Only for West.

Yes, I did. I did not expect 20 mark theory question. I tried to reply to Saadidu but it wouldn't let me

I meant whether Maximax was asked first or maximin... As I remember selecting Project 1 for 1st question and project 2 for next question

Section C, I got the question on coal price and usage variance and assessing the engineering manager's performance based on the calculated variance. Also got the balanced scorecard - had to pick 2 goals per perspective, 2 performance measure per goal, and justify the reason for picking each goal. Section B, I got targeting cost, flexible/flexed budgeting and the payoff table question

But a change in the number of trips affects the total coal usage for the month. The revised number of journeys from 150 to 170 ultimately means coal usage was revised from 300 to 340 tonnes

@GraceOla Yes, exactly. Therefore they have asked us in this question for the planning variance, which occurs due to change in the number of journeys. The operating variance is the comparison between the actual usage vs revised. However the total variance should be calculated between the acutal and original budget.

Looks like input/output accounting under EMA section of syllabus

I think the ratio of c assets to c liabilities should be higher given the sale of 50% of inventory was at 100% mark up (assets have increased). I make it 1.84:1

What was your answer? I made it 1.84:1. Current liabilities remain the same, but assets have increased - right?