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Good Evening John,
Sadly I just recently missed a pass by a whisker. I have been since watching the open tuition videos but can’t still quite work some things out that came up on the day of the exam. Can you please help me?
1).Beech Ltd Company has budgeted on producing 12,000 desks during April. Their standard cost card shows the standard usages of wood to be 1.5 meters per desk at a standard cost of $ 5 per meter.
They actually produced 15,000 desks and used 24,000 meters of wood at a cost of $108,000.
Calculate the material usage variance : I can’t understand how the answer is 7500 Adverse?2) The question had given Labour Production Ratio 104.6 and Labour Effiency Ratio of 84.3 can you please calculate the actual hours of production ?
3) Is Variable Overhead effiency related to labour effiency or Labour rate?
4)if sales volume contribution variance was given as $5000 Adverse, then
Actual sales were 5000, units and the standard contribution was 60$, work out the actual contribution for the period.?5).Investment of 100000$ up to 2 years
Calculate how much less interest would be paid if compound interest were to be used using additional information below:
Simple interest at 5% p.a
Compound interest @ 4%p.a6) There was also a question relating to attributes of good information and authoritive was thrown in the list even though it means accurate does that mean it is still not a attribute of information?
I would be very grateful if you could please help me with the above question.
Thanks.
1. The standard usage for the actual production is 15,000 x 1.5m = 22,500m.
The actual usage was 24,000m.
So they used 1,500m too much and at standard cost of $5 per m, this is a variance of 7,500 adverse.2. There is not enough information.
3. Labour efficiency. Both efficiency variances are calculated in exactly the same way except that the standard cost per hour is different.
4. You cannot calculate the actual contribution without knowing the sales price variance.
The standard contribution for the actual sales is 5,000 x $60 = $300,000. If the sales volume variance is $5,000 adverse then it means the budgeted contribution must have been 300,000 + 5,000 = $305,000.5. 100,000 x 1.04^2 = 108,160
6. It does really mean accurate, but is not one of the standard listed attributes
All of the above are explained in my free lectures – they are a complete free course for Paper F2.
Also, I think you have remembered some of the questions wrongly. You should practice using a Revision Kit from one of the ACCA approved publishers. They contain lots of exam standard questions (together with answers and explanations).
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