*** F5 December 2015 Exam was.. Instant Poll and comments ***

Q1..in the mix variance, I didnt convert grams to kg..in the yield variance, I converted grams to kg..eg 450/1000×950…All adverse for mix variance, all favourable for yield variance…….Q2…A..I saw it in a technical article but forgot the methodology…The lesson to the company thoigh is that as the management elevates a bottleneck, another one appears…

Hi, I also got 23. Hope it’s right 🙂

Question 5 I got that 600 KG are left X so Make 600 units and buy 200 units

@benson1 said:
so produce everything in-house is what you’re saying?

I got for X to Make 600 Units and buy 200 units

By chance did anyone have to calculate the average capital employed. Correct Me if I am wrong but it Said in the question they were assessed on division performance. Therefore the traceable profit aka the full net profit was used . I did not use traceable profit at all. I wouldhave if they Said they were getting the bonus based the managers profit. Also I did not include payables when I was calculating the capital employed. I just used the first two numbers in each column

I think I have failed, looking at all the mistakes I made, I didn’t convert the cost to grams on that mix/ yield question, rookie mistake but I was focusing hard on remembering how to do the variances. Annoying really, hopefully I will get some marks for at least doing the workings of the variance. I actually think they should just give the cost per gram and it’s a bit of a trick to catch you out like that with the pressure of the exam and the time limit. It’s not a test of the syllabus just a test if you are paying complete attention.

The dentist question I found odd, 7 marks to explain why it wasn’t a participative budget, seemed to be a lot of marks for discussing this, I did not come up with seven separate points.

I worked out the ROI as being I think 28% for one manager and 11% for the other, took controllable profit divide by capital employed

For the question about bottlenecks I simply multiplied the extra units by the long term value they gave per unit and took off the investment. Not sure if I viewed that too simply? My answer was to go with option 1. I saw the bit about throughput at the top but ignored it..

The final question was beyond me, I did not give this enough study time and it seemed a particularly difficult variant of that style of question, so I blew a lot of marks there.

MCQ I found reasonably ok.

What was Q#2 testing?? throughput maybe,
no clue..

really unexpected i practiced last three year exams and no doubt this is one of hardest i find.q 2 any idea only 2 marks for abc costing……really hilarious disappointment at the end

I was just wondering of those saying the cost of manufacturing X was $23, did you include a variable overhead rate multiplied by the machine hours in your calculation?

change the grams into kg more easy,yh might be you lose some marks ere

@ahmedkhan said:
change the grams into kg more easy,yh might be you lose some marks ere

I calculated yield variances using two methods 🙂 Should I be awarded bonus marks 🙂

Q1. Mix and Yield Variances. Simple and straightforward. Got 3 Adv or something like that for material mix.
Converting to kg was: 45g/1000 = 0.45kg etc and total input was 0.61kg

Yield was 20 something Fav

Part b asked for possible reasons that can lead to material Yield being adverse. The only one I remember writing is that baking the bread had too many processes involved (5, I think) and that meant too many hands were involved which could lead to material waste

Q2. I had to look long and hard at this question before I figured it was throughput. By the time I finally kinda understood what it was, it was too late to do anything. I think the information given about throughput was irrelevant and designed to confuse. Worst question for me. Thank God it was 10 marks and not 15.

Q3. Clearly incremental and clearly not participative.
It was more of an imposed style.
Part b asked for effects – demotivation of JT and CD, lack of goal congruence and use of old techniques by the old man, I’ve forgotten his name
The comment about “3 marks for saying JT and CD will go and get unmotivated and cry in their office” got me laughing like a hyena?

Q4 was a divisional performance question. Including head office costs, I got 14.4% ROI for Div F and a bonus of 4 x 2,400 = 9,600
Excluding head office costs, I got 34.5% ROI for Div F and a bonus of 17 x 2400 = 40,600 but capped it at the maximum (30 or 36k, can’t remember)

Div N was about 6.5% ROI with head office costs and 9.5% ROI without it. The manager didn’t get a bonus in either case. I added the new investment and 8% additional profit to the 2nd calculation.
I’m not sure about my Div N answer sha.

Q5 was limiting factor analysis and I was initially scared but I think it turned out well.
Part a was
Mat A – 1kg x 1.60
Mat B – 2 kg x 1.50
Labour – $8 x 2 hrs
V O/H – $0.80 x 3 machine hrs
Total- $23

Part B
Mat A had enough material to make only 600 units
Mat B had enough for 800 units of component x
Labour was also unlimited
At the end my answer was:
Manufacture: $23 x 600 = 13,800
Buy: $28 x 200 = 5,600
Total = 19,400

If we had bought all for $28 x 800 = $22,400
Therefore we saved $3,000

Although my presentation for part B was ALL OVER the place.

Mcqs were fair, much easier than opentuition’s and kaplans mock which I both failed yesterday and was sad as a result. Sully me huh!
I hope I manage to get 20 marks in the Mcqs at least and get 50 at least to get over the f5 nightmare