PM*** F5 June 2014 Exam was.. Instant Poll and comments ***

When ACCA will upload the paper?

I reached the exam hall 10 secs before exam start and started reading and only to see a sheet of graph paper??on my table when we are asked to stop writing. Linear programming got 3.32 m forgot to less fixed cost... 35 mins on abc question not knowing what are the uncertainties to a budget Skip the qn on slack Spent 10 mins reading transfer pricing and skip the question Managed to finish qn 5 ???? Performance measurement is okie thanks to opentutution lectures Still hoping to pass

Completely agree!

Does anyone know when they will publish the questions and answers on the acca site?

Eseem u r right by saying that acca will publish the question and answer,once they they workout how to do transfer pricing + division performance question.

Essem, I don't think there was anything to do with relevant costing in the TP question. But I might be wrong... Q1 - quite a few calculations but really straight forward. Price of X hasn't changed much, only few pence, price of Y has decreased, therefore volume of the sales will increase as well as revenue (elastic demand), price of Z increased, however because the demand is inelastic, volume will not change much, and revenue will increase due to higher prices. Q2 - linear programming, optimal point on the line Build and Y<66000. Found it difficult to identify slack, I was thinking only about direct labour, so said there was no slack. However now I think that the maximum demand for Y would be non critical constraint. Q3 - straightforward ratios. When analyzing the financial performance I have pointed at COS as an important element that should be looked into as the Gearbox division had a really high 60% cos compared to others of 30-5% For the transfer price I took the cost of £7550 (if I remember correctly), 40% of it would be variable cost - minimum TP accepted, -5% the maximum price accepted. No idea whether that is any close to the truth. Q4 - I calculated all 6 profits separately (however I haven't noticed anything about advertising costs saying it shouldn't be included in any?) maximin rule, I have compared two of the worst profits and chose the higher one. In both the same option was selected. Q5 - this one I found really difficult, didn't really calculate the variance, didn't explain the definitions.... I did make an attempt to analyze budgeted sales compared to actual and tried to link this to the scenario. I really hope this will be enough!

@anna, Did exactly the Same on q4. Why do you think, that advertisment shouldnt be included in the Profit calc?

the answer in question number 4 was maximin 35 as well as epected value 35.

Guys i wasted a lot of my time on Q1 which i do believe will regret. But for the Q2 which was Linear programming was it a must to solve in Hours or Minutes as they did put in brackets? I want your assurances please!!

Linear Programming could have been done by either taking hours or minutes it doesnt really matter. Secondly How can expected value answer be 35. The question asked for each of the two pricing options workout the answers using EV or maybe i missed something :P The answers for the questions are released 15 days before the result so its a long wait and we would have forgotten everything by then :P

@ jelly: in the Sales mix variance the contribution of the small Package was higher as of the Full pakage or Not? And wasnt actual Sales Portion of small higher than full (Economics Crisis, Chapter etc.). Does someone remember the cs ratios?

i have draw the graph with pencil rather than pen am i going to get marks for that?

Just saw some comments of not including advertising costs... but I havent noticed anything apart from two different costs depending on the price.

I have a question to the experts students of F5 this June Exam. i got confused with the question related to calculating the ROCE, Asset Turnover and Operating Profit Margin of Co C and Co W Design Division and Gearbox Division the question was that Co C and Co W companies belong to one company something called Renold or whatever. now Co C sold some manufacturing items to Co W Gearbox division and in the Co C that amount was shown in the sales value, on the other side, in Co W Gearbox division the items purchased from Co C was shown in the Cost of sale. i got confused in the part, on how to calculate the ROCE and Asset Turnover,Operating Profit Margin. becuase when i studied F3 i recall that inter-sale and inter-purchase between two companies belonging to the same owner are declined. can anyone comment, how this question could have been answered. was the rationale on this question stating the purchase and sale between Co C and Co W companies. i think i made mistake in this question. any comment and advise is greatly appreciated.

hi all, for those that sat this paper, am interested in knowing how accurate the tips were, please comment

The Tips were very very accurate! And June 2014 f5 questions are now posted (Without Answers) https://www.accaglobal.com/gb/en/student/acca-qual-student-journey/qual-resource/acca-qualification/f5/past-exam-papers.html

thanks ahmed,

Hi, Tanks Ahmed, Can someone explain how to calc. the limiting factors simultaneous equation on Minute Basis? Iam always getting Otter values? Thanks

For part A) the Optimum Point was y=6600 and build stage in minuted the equation would be 24x+20y=1800000 Minutes.(build stage) To solve this for maximum Contribution Sub in y=66000 into equation for build stage so you would end up with 24x+20(66000)=1800000 24x+1320000=1800000 24x=480000 x-480000/24 x=20000 Contribution function= 30x+40y units of x which can be produced at the optimum point =20000 for y=66000 therefore 30(20000)+40(66000)=3240000 less fixed cost per month x 3 as profit for quarter =650000 x 3=(1950000) Profit therefore equals =3240000-1950000=1290000(for the quarter) Hope this helps you.

Lol i got the same as you on the basis that you done the c/s ratio given as a percentage and multiplied it by the selling price for each of the vallet thingy's:P

@ feroz: Tranks ! Could You please explain whey optimal Point was 66000? I calc. Booth points with the constraints formula...

For mix i think both full and mini were 1130 A & F respectively. (1130) x (50 x .446) + 1130 x (30 x .55) for total variance. That's what I had in the exam I believe.

Think quantity variance was 1530 F for full and 850 F for Mini times (C/S x sales prices) Again that's just what I did in the exam but fingers crossed that's right as it will hopefully make up for the incredibly daft mistake I made in linear programming of ignoring the maximum demand line for y and working out a simultaneous equation instead. Thin Q's 1 and 4 I should score highly on as well.

Will just have to wait until results day... No point in stressing about it now kids!

Not stressing, it's just interesting to work out how you might have done.

Q3 I think the transfer price was $7 190.47

@ ANTON i dont know how you calculated yours but based on minutes if you derived your constraints from that the there was demand constraint for both products xeno and yogo if you plotted your lines correctly using a appropriate scale what you should of found is your fesable reigon bounded by the contraints was the area under the lines if u then drew ur iso contribution line pushed it out to the furthest point what you should of found is the furthest point(optimum point) was the point at which the demand for product y the line intersects the build stage line. the equation of the lines were y=6600 and cant remember form the top of my head the equation for the build stage. just solve them simultaneously get the max amount of products for x and y sub into the contribution objective/function w/e u wish to call it which was i think something like c=30x+40y u get ur max contribution deduct the fc for the quater u get the profit 14 marks in bag.

And i also calculated slack so i got those marks in the bag as well :P But all other marks are out of the bag made really silly mistakes in ABC and Variances!

ABC question couldn't of have had been any easier for me not even boasting. Considering i done all costing methods except environmental. variances how ever my calculations would be right only if my contribution per unit was right for the valets i just multiplied the selling prices by the c/s ratio given as a percentage. then the way i calculated them were slightly different to the techinques given in the exam past paper solutions on acca's website. but i did get 1130f for full vallet and 1130adverse for mini vallet. giving me a total sales mix varince of 6554 adverse and for sales qunatity i got 1530 f for full vallet and 850f for mini vallet. giving me a total sales quantity variance of 48144f then i calculated the sales volume variance being 41590f in total for both services. netting of both advanced sales variances of sales mix and yield i got 41590f. so on this base my answer should be correct. but this base is was the contribution per unit right for both products.

I had the same results as Feroz in Q 5: mix variance 6554 A and 48144 F. I hope it is the right answer.