PMQuestion 6 Jola Publishing Co in BPP revision kit 2012

They are comparing the ABC overheads with the traditional overheads - not comparing the two products. So CB is 0.05 more than it was before they changed to ABC.

@ John Moffat Traditional overhead allocation as it says in the question @ F5 BPP exam kit 2012: Overhead CB: $2.4 per unit TJ: $4.0 per unit that means if changing to ABC allocation method for CB 0.05 higher = 2.4 + 0.05 must be = 2.45; for TJ lower 0.3 must be =4.0-0.3= 3.7. But the question says CB@ 2.35, TJ@ 3.65. There are something wrongs in here! PS: If u have the examkit, pls open and check it for me. Additionally, in the answer they provide wrong value for TJ =3.95 instead of 3.65.

Part (a) refers to the accounting year just completed, and for that year the overheads were absorbed on machine hours and were 2.30 and 3.95. The question says that if they had done it using ABC then overheads would be 0.05 higher for CB (so 2.35) and 0.30 lower for TJ (so 3.65). For part(a) you are not required to do any arithmetic - just to explain whey they are different. Part (b) is looking at next year and so the overheads next year are different both traditional and ABC.

My fail not read the question carefully. Thank you John Moffat!

You are welcome :-)

By the way, can I use F5 2012 BPP exam kit for Dec 2013 exam John Moffat?

Yes you can. Just make sure you download the 2012 real exams from the ACCA website.

Actually, for above question I misunderstood the question from ACCA real question 6.2012 with the amended question which is in the exam kit. They r all the same at the beginning but a bit different at some bottom lines. Again, thank you very much John. Nice weekend!