[jeff]

NINJA Study Notes, Flashcards, and Audio: https://www.another71.com/products-page/

Wiley Software: https://www.another71.com/wiley-cpa-software/

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[TheFashionista]

Hey Everyone,

I have been using this site to help me study for the past few months but this is my first time posting. First I would like to say thanks to all of you for your help and support in getting me through this experience.

I am studying for BEC now and I am having serious trouble with variances and I really feel that Becker is not explaining the MCQ's all that well.

This a question that I just don't understand. If anyone can please break it down for me I would really appreciate it!!

Water Control, Inc. manufactures water pumps and uses a standard cost system. The standard factory overhead

costs per water pump are based on direct labor hours and are shown below:

Variable overhead (4 hours at $8/hour) $32

Fixed overhead (4 hours at $5*/hour) 20

Total overhead cost per unit $52

*Based on a capacity of 100,000 direct labor hours per month.

The following additional information is available for the month of November.

• 22,000 pumps were produced although 25,000 had been scheduled for production.

• 94,000 direct labor hours were worked at a total cost of $940,000.

• The standard direct labor rate is $9 per hour.

• The standard direct labor time per unit is four hours.

• Variable overhead costs were $740,000.

• Fixed overhead costs were $540,000.

The fixed overhead spending variance for November was:

a. $40,000 unfavorable.

b. $70,000 unfavorable.

c. $240,000 unfavorable.

d. $15,000 favorable.

Explanation

Choice “a” is correct. $40,000 unfavorable overhead spending variance:

Actual fixed overhead $540,000

Budgeted fixed overhead =

100,000 DL hrs. x $5/hr = 500,000

Unfavorable variance $ 40,000

Choices “b”, “c”, and “d” are incorrect, based on the above explanation.

[gottagetmycpa]

Starting to think that BEC is possible the worst subject EVER!!!!!!!!!!!!!!!!!!

FAR 76
REG 76(2x)
BEC FAILED (2x)
AUD FAILED (2x)

"When you don't give up, YOU CANNOT FAIL"

[gottagetmycpa]

Starting to think that BEC is possible the worst subject EVER!!!!!!!!!!!!!!!!!!

FAR 76
REG 76(2x)
BEC FAILED (2x)
AUD FAILED (2x)

"When you don't give up, YOU CANNOT FAIL"

[WTFuller]

@TheFashionista

You have your budget: Fixed O/H @ $5/hr

Then you have that little piece of information: *Based on a capacity of 100,000 direct labor hours per month.

(That information is to tell you how they determined the actuals – and how you will find your budgeted amounts.)

Then they give you the Actual: • Fixed overhead costs were $540,000.

So, you budgeted for $500,000 Fixed (O/H) – $5/hr * 100,000hrs

Budget – Actual = Negative Balance (unfavorable), Positive Balance (Favorable)

$500,000 – $540,000 = $(40,000)

-> Unfavorable Variance of $40,000

I have failed this test twice, but I've done “Stronger” on variances both times.

After you identify the variance you will be looking at, and it's components, always remember:

Budget – Actual = Negative Balance (unfavorable), Positive Balance (Favorable)

AUD - 76
BEC - 71, 74
FAR - 74
REG - 92 (wtf?)

[WTFuller]

@TheFashionista

You have your budget: Fixed O/H @ $5/hr

Then you have that little piece of information: *Based on a capacity of 100,000 direct labor hours per month.

(That information is to tell you how they determined the actuals – and how you will find your budgeted amounts.)

Then they give you the Actual: • Fixed overhead costs were $540,000.

So, you budgeted for $500,000 Fixed (O/H) – $5/hr * 100,000hrs

Budget – Actual = Negative Balance (unfavorable), Positive Balance (Favorable)

$500,000 – $540,000 = $(40,000)

-> Unfavorable Variance of $40,000

I have failed this test twice, but I've done “Stronger” on variances both times.

After you identify the variance you will be looking at, and it's components, always remember:

Budget – Actual = Negative Balance (unfavorable), Positive Balance (Favorable)

AUD - 76
BEC - 71, 74
FAR - 74
REG - 92 (wtf?)

[Anonymous]

Gearty (Becker) said Q1 BEC testing window would have WCs on FAR, AUD and REG. Does anyone know if that's still the case this quarter?

Thanks!

[Anonymous]

Gearty (Becker) said Q1 BEC testing window would have WCs on FAR, AUD and REG. Does anyone know if that's still the case this quarter?

Thanks!

[Minimorty]

I believe so. In the writing tutorial for BEC, Gearty said it could extend all the way through 2012 and maybe into 2013.

[Minimorty]

I believe so. In the writing tutorial for BEC, Gearty said it could extend all the way through 2012 and maybe into 2013.

[TheFashionista]

Thanks WTFuller. I understand the basic concepts of variances (I get conceptual questions correct) but I have trouble applying it. I hope I nail it before my test on Tuesday!

[TheFashionista]

Thanks WTFuller. I understand the basic concepts of variances (I get conceptual questions correct) but I have trouble applying it. I hope I nail it before my test on Tuesday!

[Minimorty]

Now that I've taken the test, I'd like to revise my score prediction down to a 77 or 78. I dominated the first testlet. The 2nd was a lot harder than the first. Did ok but not great. Third wasn't as bad. Cruised through the writing. Three week wait!

[Minimorty]

Now that I've taken the test, I'd like to revise my score prediction down to a 77 or 78. I dominated the first testlet. The 2nd was a lot harder than the first. Did ok but not great. Third wasn't as bad. Cruised through the writing. Three week wait!

[Anonymous]

Mini, do you mind sharing your testlet scores for Becker final exam 1?

[Anonymous]

Mini, do you mind sharing your testlet scores for Becker final exam 1?

[Author]

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