BEC Study Group - Page 16

Viewing 15 posts - 226 through 240 (of 247 total)
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  • #2790219

    How was everyone's study weekend?

     
    Jeff Elliott, CPA (KS)
    NINJA CPA Review
    #2796984
    KFu
    Participant

    Hey everyone,

    I am studying now for BEC now. I passed the BEC part of the exam about 5 years ago, but needed to step away from the CPA because of illness. I just took FAR this week and I am planning on sitting for BEC in late January/early February.

    With all that said, when I passed BEC, the written communications weren't a thing.

    Anybody have/want to give any insight on what to expect?

    #2800608
    tcharie
    Participant

    @KFu, I would say depending on your review prep materials, spend time on the review for those sections. I use Becker. It's obviously not going to be identical questions but I feel like they provide a great foundation for the type of problems you will run across. I took the BEC exam today and I honestly felt like the written communications were the easiest parts of the exam.

    With that said…I believe people are underestimating the power of IT in the BEC lol.

    #2806707
    se7en.14
    Participant

    Do both payback and discounted payback not take into account depreciation and salvage value?
    Thanks

    .
    #2856771
    parveen.asia
    Participant

    i am having trouble with grasping economic section of the BEC. How is everyone else studying for this section?

    #2875062
    LVNB15
    Participant

    Is anyone having trouble with the variance analysis questions in Ninja (and 1 or 2 mc in Becker) that involve a line diagram? The questions ask you to determine whether or not a point is favorable or unfavorable. For anyone who has taken BEC before, are these types of questions common?

    Ninja & Becker

    FAR: 82

    AUD: 84

    BEC: 90

    REG: 90

    #2879616
    capitanestevan
    Participant

    I feel like the MCQ on Roger isn't as random as I'd like. Like once you've gone through everything you keep getting many of the same questions on each quiz. It's a little unnerving since it feels like there may be some areas you're not hitting…

    AUD - 84
    BEC - 80
    FAR - 88
    REG - 84
    Whose statements are these? Management's!
    #2933184
    asdf
    Participant

    hey guys, need some help to understanding this question.
    basically, i don't understand why Variable OH uses maximum capacity and Fixed OH is normal capacity.
    i've read the explanation but i don't get it. please help!!
    —————————————————————–
    Dean Company is preparing a flexible budget for 2012 and the following maximum capacity estimates for department M are available:

    At maximum capacity
    Direct manufacturing labor hours 60,000
    Variable factory overhead $150,000
    Fixed factory overhead $240,000

    Assume that Dean’s normal capacity is 80% of maximum capacity. What would be the total factory overhead rate, based on direct manufacturing labor hours, in a flexible budget at normal capacity?
    ——————————————————————————–
    answer is $7.50
    This answer is correct. The variable portion of the factory overhead rate can be computed by dividing variable factory overhead (at maximum capacity) by direct manufacturing labor hours (at maximum capacity).

    $150,000/60,000 = $2.50

    Note that the variable overhead rate is constant over the relevant range of activity. Since total fixed overhead is constant over the relevant range, the budgeted fixed overhead is divided by direct manufacturing labor hours at 80% of maximum capacity, or 48,000 hours (60,000 Γ— 80%).

    $240,000/48,000 = $5.00

    The total factory overhead rate is $2.50 plus $5.00, or $7.50 per direct manufacturing labor hour.

    FAR - Passed

    REG - Passed

    AUD - Passed

    BEC - July 2020 - PASSSSED!!!!!

    -----------------------------------------

    PETH - Oct 2020 - PassedΒ  πŸ˜‰

    #2937240
    TNTTN
    Participant

    Hi guys, please help. When can we tell if the question asks for variable cost only, fixed cost only or total overhead cost? Why don't we take into account the variable cost for the question below?

    Black and Company manufacture concrete lawn products. Black has invested a substantial amount in concrete mixing, casting, and curing equipment and has allocated fixed costs of $2.00 per unit produced based on normal capacity. During a period of slack demand, a salesman has proposed accepting an order for ten thousand ornamental concrete statues to be delivered to the customer at a price of $2.79 each. The cost of each unit is projected to be:

    Materials $0.62

    Labor $0.47

    Shipping $0.07

    Overhead $2.00

    If Black’s normal capacity was 20,000 units per month, and this 10,000 unit contract was the only one worked on during the month, which of the following adjustments to the factory overhead control account should be made at the end of the month?

    A. A debit of $3,700

    B. A credit of $3,700

    C. A debit of $20,000

    D. A credit of $20,000
    Answer
    Choice “D” is correct. Black's actual overhead costs are 20,000 times $2.00, or $40,000. The
    reduced quantity of products produced would have resulted in only 10,000 times $2.00, or
    $20,000, being credited to this account for application to the job. A credit adjustment of
    $20,000 would be required to close the unapplied amounts at the end of the month.

    AUD - 79
    BEC - 88
    FAR - 85
    REG - 81
    ^______^
    #2951900

    I decided to resurrect the study groups. If you have a study strategy question for me, post it here. πŸ™‚

    Jeff

     
    Jeff Elliott, CPA (KS)
    NINJA CPA Review
    #2951975
    asdf
    Participant

    Thanks Jeff!!
    and a bump for my question. please help!
    ——————————————–
    hey guys, need some help to understanding this question.
    basically, i don't understand why Variable OH uses maximum capacity and Fixed OH is normal capacity.
    i've read the explanation but i don't get it. please help!!
    —————————————————————–
    Dean Company is preparing a flexible budget for 2012 and the following maximum capacity estimates for department M are available:

    At maximum capacity
    Direct manufacturing labor hours 60,000
    Variable factory overhead $150,000
    Fixed factory overhead $240,000

    Assume that Dean’s normal capacity is 80% of maximum capacity. What would be the total factory overhead rate, based on direct manufacturing labor hours, in a flexible budget at normal capacity?
    ——————————————————————————–
    answer is $7.50
    This answer is correct. The variable portion of the factory overhead rate can be computed by dividing variable factory overhead (at maximum capacity) by direct manufacturing labor hours (at maximum capacity).

    $150,000/60,000 = $2.50

    Note that the variable overhead rate is constant over the relevant range of activity. Since total fixed overhead is constant over the relevant range, the budgeted fixed overhead is divided by direct manufacturing labor hours at 80% of maximum capacity, or 48,000 hours (60,000 Γ— 80%).

    $240,000/48,000 = $5.00

    The total factory overhead rate is $2.50 plus $5.00, or $7.50 per direct manufacturing labor hour.

    FAR - Passed

    REG - Passed

    AUD - Passed

    BEC - July 2020 - PASSSSED!!!!!

    -----------------------------------------

    PETH - Oct 2020 - PassedΒ  πŸ˜‰

    #2952989

    hey guys, need some help to understanding this question.
    basically, i don't understand why Variable OH uses maximum capacity and Fixed OH is normal capacity.
    i've read the explanation but i don't get it. please help!!

    Fixed Overhead always uses Normal Capacity.
    Fixed Overhead Application Rate = Budgeted Fixed Overhead/Normal Capacity.

    Variable Overhead is constant per unit and it will use the budgeted capacity. In the particular question, Variable Overhead uses maximum capacity and is calculated at maximum capacity.

     
    Jeff Elliott, CPA (KS)
    NINJA CPA Review
    #2953451
    asdf
    Participant

    oh…i see.. thanks for the clarification!!! @Jeff

    FAR - Passed

    REG - Passed

    AUD - Passed

    BEC - July 2020 - PASSSSED!!!!!

    -----------------------------------------

    PETH - Oct 2020 - PassedΒ  πŸ˜‰

    #2960075
    #2960084
    asdf
    Participant

    $2,250 Unfavorable!!!!!

    FAR - Passed

    REG - Passed

    AUD - Passed

    BEC - July 2020 - PASSSSED!!!!!

    -----------------------------------------

    PETH - Oct 2020 - PassedΒ  πŸ˜‰

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