PMJune 10 Exams POLL Paper F5 was Post your comments here

@saad0090 said:
any1 plz cup up with a logical arguemnt why this isnt correct???

@navrozkaredia said:
i think my question 1 ABC is wrong .
in traditional method i was calculated Overhead 400000/800 = 500 but i think correct answer was 400000/40000 = 4

also my ABC part wrong i am doing
superviser/visit 90000/500 = 180
planner /hours 70000/40000 = 1.75
property related/ document 240000/250 = 960
i think my part 1 was wrong,
but i dont know about part 2 any one help ?

@acltang72 said:
I don't understand how people managed to get 2 shadow prices. Shadow price is the additional contribution earned from one additional unit of SCARCE resource. The scarce resource was the tailor time. For example you can't possibly use up the maximum fabric of 240 L suits because tailor time limits production to 200 L suits. (There is a slack of fabric so therefore no shadow price as it's not a scarce resource). Could be wrong, but that's what I did.

Also that contract offer of pay at 3 times should have been rejected. Calculate the contribution less the labour costs of the original and new contract and you should find that the new contract generates less contribution.

The question about the manager manipulating the company records was about budgetary bias and slack. Well that's what I assumed. I gave a definition and an example.

One thing I remember being stuck on was how can there possibly be 150 staff days in a quarter when there are only 90 days in a quarter (3 months x 30)....... I ignored the staff days and just used the normal days. But I'm sure I won't lose many marks if its wrong. I'm pretty sure I got target 2 and 3 right. For target 2 I got NIL bonus for quarter 1 only, and NIL bonus for quarter 1 and 2.

For the staff lateness' I mentioned that it may not be controllable as the lateness was at its greatest during quarter 2 and 3. Quarter 2 and 3 was during Autumn and Winter seasons, where traffic, train delays & staff illness are at it's worst due to poor weather, therefore uncontrollable.

Hope for 50!

@arleneld said:
I was a bit confused about the 450 staff days, but then I though there will be several members of staff - 5 ?
5*90 = 450

@tameablebunchy said:
the question clearly stated both material and tailors were in short supply therefore limited and shadow prices had to be calculated for both.

@navrozkaredia said:
i think my question 1 ABC is wrong .
in traditional method i was calculated Overhead 400000/800 = 500 but i think correct answer was 400000/40000 = 4

also my ABC part wrong i am doing
superviser/visit 90000/500 = 180
planner /hours 70000/40000 = 1.75
property related/ document 240000/250 = 960
i think my part 1 was wrong,
but i dont know about part 2 any one help ?

@ahsanpervaiz said:
7W+5L = 3500
2W+2L = 1201 (if I calculate it for tailor’s time)
i still didn't understand the calculation with this, my one shadow price was 10 but was unable to calculate it for the tailors time, can anybody solve here this for me

@keeva said:
My version:
1. BBB
a)
GC EX
Materials $3,500.00 $8,000.00
Labour costs ($15) $4,500.00 $7,500.00
Overheads * $3,000.00 $5,000.00
Cost $11,000.00 $20,500.00
Mark-up (50%) $5,500.00 $10,250.00
Quoted price $16,500.00 $30,750.00

* O.A.R. = 400.000/ 40.000 = $10 per hour

@keeva said:
b) ABC

Activity Cost driver Rate
Supervising $90,000.00 No of site visits 500.00 $180.00 per site visit
Planning $70,000.00 No of plann doc 250.00 $280.00 per document
Property related $240,000.00 No of lab h 40,000.00 $6.00 per hour
TOTAL $400,000.00


GC EX
Materials $3,500.00 $8,000.00
Labour costs ($15) $4,500.00 $7,500.00
Supervising $180.00 $1,080.00
Planning $280.00 $1,400.00
Property costs $1,800.00 $3,000.00
Cost $10,260.00 $20,980.00
Mark-up (50%) $5,130.00 $10,490.00
Quoted price $15,390.00 $31,470.00
I hope it's ok...what do u think?

@keeva said:
Here it is:
7W+5L = 3500
2W+2L = 1201
W = (1201 - 2L) /2 and replace it in the first one:
(8407 - 14L)/2 + 5L = 3500
8407 - 14L +10 L = 7000
-4L = -1407
L=351.75
W = (1201 - 2*351.75)/2 = (1201 - 703.5)/2 = 248.75
Based on these, the new contribution is:
C = 48 * 248.75 + 40 * 351.75 = 11940 + 14070 = 26010
The"old" contribution was 26.000, so, indeed the Sh price is $10

@keeva said:
7W + 5L = 3501
2W + 2L = 1200
W = (1200 - 2L)/2 = 600 - L
7 (600 - L) + 5L = 3501
4200 - 7L + 5L = 3501
-2L = -699
L = 349.50
W = 250.50
New contribution = 48*250.5 + 40 *349.5 = 12024 + 13980 = 26004
Old contribution = 26000
The sh price = $4 (for tailor's time)

@keeva said:
Here it is:
7W+5L = 3500
2W+2L = 1201
W = (1201 - 2L) /2 and replace it in the first one:
(8407 - 14L)/2 + 5L = 3500
8407 - 14L +10 L = 7000
-4L = -1407
L=351.75
W = (1201 - 2*351.75)/2 = (1201 - 703.5)/2 = 248.75
Based on these, the new contribution is:
C = 48 * 248.75 + 40 * 351.75 = 11940 + 14070 = 26010
The"old" contribution was 26.000, so, indeed the Sh price is $10

@abdullahkhan49 said:
i think guys the optimal point was B which is given in question and at this point production mix was 280 and 300.
so in order to calculate shadow price first we need to calculat if their is any slackand by putting these values in constraints their is slack avalible in bothconstraints so their was no shadow price.

That's clearly not going to be right--they wouldn't have a 4 mark q to which the answer was 0!!