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Hi, did anyone get perfect information question.
How much did you get? I cannot remember the how the question went but I know I kept getting negative result so I put 0 in the end.My set was with the market size and share variance.
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 $40 per tonne = 1600 Adverse is what I got
aytashi wrote:This is for students who did not attend in March session.
current ratio = current assets/current liabilities = 1.6/1 = Let’s say 160/100 for easy understanding.
30% of current assets are inventories = 160*0.3 =48
Half of inventories were sold (deduct (48-24) from assets) for cash with 100% mark-up (add 48 to current assets).
Which means :
Now current assets are = 160-24+48= 184
Now current ratio is 184/100 = 1.84 : 1.Someone mentioned that the question was to calculate ratio after reducing liabilities. I might have forgotten the question. Anyways, in this case calculations will be as follows I assume:
After deducting half of inventories from current assets (160-24) you don’t add 48 cash to your assets, but deduct it from your current liabilities:
=(160-24)/100-48 = 136/52 = 34/13
The answer was in the form current ratio = _____:1 . So I believe it was asked to calculate without liabilities, as the answer doesn’t match.
simk wrote:Did anyone have the veggie pot question? They had asked us to calculate the cost gap and had given the cost per batch and the selling price. I read the situation multiple times but just couldn’t figure out how many units were in each batch (to be able to calculate cost per unit). What did you all do?
I had that question. I got 1.39$. I am not sure if it was correct answer.
The question was :
Company 1 buys soups from Company 2. It wishes to sell 1 pot for 2$, and to earn 20% profit.
Company 2 sent invoice to Company 1 for the batch of soup pots totalling 155$. After calculating it discovered there is a cost gap. Company 2 adds 15% mark-up to the costs.I calculated it as follows:
1) 155$ is cost of purchases for Company 1, which wants to earn 20% profit margin. Which means costs are 80% of sales.
155$=sales*80%
Sales = 193.75$
If sales are 193.75$ and Company 1 wants to sell 1 pot for 2 dollars, it means there approximately 97 pots in a batch.2) Company 2 sells a batch for 155$, which means this number includes costs + 15% mark up of costs.
155= x+0.15x
x= 155/1.15 x=134.78 This is target cost.
Devide it to number of pots= 134.78 / 97= 1.39$.I don’t know how to find the gap. I just stupidly picked 1.39$.
anelehhelena wrote:Hi, did anyone get perfect information question.
How much did you get? I cannot remember the how the question went but I know I kept getting negative result so I put 0 in the end.I got 5000$. Information with EV was 109000, and perfect info was 114000. You didn’t have to use directly attributible fixed costs at this point beacuse it was mentioned that profitability table was prepared after fixed costs were deducted.
Erjona wrote:Yess..it is so sad that they put the same question as in September 2020 exam…that was so largely and extensively discussed since it was a disaster:(
Which question? Do they use the same question in different sessions??
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 AdvI also had that case in section c. Did you have materials mix variance question in MCQ?
aytashi wrote:This is for students who did not attend in March session.
I think the material in the question is the coal not the trip.
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
Then you must have usage operating variance to be 1000F because total material usage variance equals:
170 trips was suppose to used (170 x 2) = 340tonnes
But they used 355tonnesVariance = (340-355) x 40 (standard price per tonne) = 600A
I think the material here is coal not trip.
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 = $600Alegendary 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 AdvYeah.
I got one that was confusing.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 1.60×100/115= 1.39
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 AdvIt 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…!
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 laptopsaytashi 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.
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
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