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Hi,
Question 1) when working out the standard cost per (either kg/L or any other unit) I’ve seen it worked out in different ways and wanted to clear up what the procedure was. So if you have the price per kg, in some instances of a question Kaplan have multiplied the standard price by the standard input and then have divided by the total standard input.
Eg. For 19 L of product X standard input mix of 8L of chemical A (standard cost £20 per L) and 12L of chemical B (standard cost £25/L) is required. So taking their approach I would do (8*20)+(12*25)/19. This doesn’t always work so please could you let me know when I would do that?Question 2) in our textbook they have taught the operating statement under marginal/absorption costing. Is this going to be coming up in the exam as I have not seen any questions for it in the past papers. Also the same q for labour variances (productive efficiency and idle time)?
Thank you for you help!
1. The best way is the way that I go through in my free lectures. It is the most logical way.
2. It is very unlikely that you will be asked to produce an operating statement in the F5 exam (as it is revision from F2) but it just could be asked. The same applies to the labour variances (although the advanced idle time variances just could be asked, because in F2 it is only basic idle time variances).
All of this is covered in my free lectures. The lectures are a complete free course for Paper F5 and cover everything needed to be able to pass the exam well 🙂
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