• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exams

How was your exam? Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

PM – Kaplan question 40 – Activity based costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › PM – Kaplan question 40 – Activity based costing

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by LMR1006.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • September 21, 2023 at 1:06 am #692355
    LeylaA
    Participant
    • Topics: 10
    • Replies: 8
    • ☆

    Hello. Could you please explain the calculation in 40 question in PM KAPLAN revision book. For which purpose information regarding total labor costs (kUSD 360) was given? How should we find cost of unit by using ABC? The calculation illustrated in answer section of the corresponding book seemed a bit confusing to me.
    Thank you in advance for your explanation.

    September 21, 2023 at 7:24 am #692360
    LMR1006
    Keymaster
    • Topics: 4
    • Replies: 1505
    • ☆☆☆☆☆

    The labour costs were not relevant to the question
    Often questions have information in them that you don’t use, it is meant as a distractor.
    So how is it done under absorption?
    It’s $156000/6000 units which is total units = $26

    ABC is about what drives overheads
    So in this question it is obviously the number of deliveries
    X has 5 deliveries (1000 units/size of 200)
    Y has 5 and Z has 3 so that’s 13 in total.
    It’s $156000/13 = $12000 per delivery

    X has 5 deliveries * $12000 then divided by 1000 units = $60 so that’s an increase of $34
    Y has 5 * $12000 div by 2000 = $30 so that’s an increase of $4
    and Z has 3 * $12000 div by 3000. = $12 which is a decrease of $14

    September 21, 2023 at 8:06 pm #692395
    LeylaA
    Participant
    • Topics: 10
    • Replies: 8
    • ☆

    1). How could I differentiate when this kind information is needed to be used or not (I mean information regarding 360,000$ labour costs). Because when I tried to find total cost for calculation of absorption costing, I’ve summarized 360,000$+156,000$?

    2). the rest of explanation is clear to me. thank you

    September 22, 2023 at 5:42 am #692403
    LMR1006
    Keymaster
    • Topics: 4
    • Replies: 1505
    • ☆☆☆☆☆

    “You as a candidate” have to read the requirement of the question and decide what information is relevant to answering the question.

    As I have already said, often questions will include data that you do not need to answer the question it’s called a distractor!

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • shravanm on ACCA AAA Employability and Technology Skills
  • MitaP on Presentation of Financial Statements (IAS 1) – ACCA Strategic Business Reporting (SBR) lectures
  • John Moffat on Activity Based Costing part 1 – ACCA Performance Management (PM)
  • Shabi on Activity Based Costing part 1 – ACCA Performance Management (PM)
  • Ark1 on Variance Analysis (part 4) – ACCA Management Accounting (MA)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in