[Nicc87]

So I have bec tomorrow and I’m taking Becker final exam here. Really stuck on this variance question. the company purchased 35000units of raw materials for $105000, 2 unit rm required to produce one unit of final product. In November the company produced 12000 units of product. The standard allowed for material was $60,000 and there was an unfavorable quantity variance of $2500, question is the material price variance for the units used in November was: A.12500 U B. 2500U C. 2500 F D.11000 U. Really stuck at the standard allowed for material and can’t get an answer….can anybody help me for this one? Thanks amillion!

AUD 82(08/12/2013)
BEC 82(08/28/2013)
FAR 76(11/27/2013)
REG 76(12/06/2013)
Becker Review and Final review.
You are only as strong as your weakest link.

[Never_Give_Up1]

I believe the correct answer is 12,000 I had troubles with this question earlier today. So I selected the 12,500 and I don't believe it was on my review questions that were missed. I think it is another Becker error.

FAR - 81
REG - 81
AUD - 82
BEC - 81

Ethics - Done
State License Exam - Done

License - Licensed CPA in Utah

[Whopper Warrior]

Take what you know:

Quantity Variance = (material used – standard allowed) * STD Rate

2,500 = (material used – 12,000*2) * (60,000 / 24,000)

2,500 = (material used – 24,000) * 2.5

1,000 = material used – 24,000

25,000 = material used

Or we used 1,000 more materials then allowed. If you notice in the question it explicitly states that 2 units of material are required for one unit of final product (12,000 units produced * 2 standard units of direct material). Also note that standard total cost is based on the standard units that should be used in production (60,000 standard cost / 24,000 units of material), not actual units used (25,000) or units purchased (35,000).

Now for the price vairaince

price variance = (Actual Cost – Standard Cost) * Actual Materials Used

p.v = (105,000/35,000 – 2.5 (see above) * 25,000 (see above)

p.v = (3 – 2.5) * 25,000

.p.v = 12,500 unfavorable

To find actual unit cost we take purchase price (105,000) and divide by total purchases (35,000). When finding standards for standards, keep them together. Same thing for actual. When finding variances; remember (difference cost * actual use), and for efficiency (difference use * standard price). This works for DM and DL and to an extent VOH.

I am not sure if it (act – std) or (std – act). I just look at the problem and realize unfavorable means we used more or paid more. This is a very good problem because you have to utilize multiple variances and calculations to solve. If you need more explanation, please let me know.

ALL 4 parts passed summer 13
Ethics October 13
Experience (waiting)

Becker Only

[Never_Give_Up1]

Glad Whopper is here to straighten it out… I swear my mind has gone to mush the past couple of days… I was nailing the variance questions… now I am missing them like crazy…

FAR - 81
REG - 81
AUD - 82
BEC - 81

Ethics - Done
State License Exam - Done

License - Licensed CPA in Utah

[Nicc87]

Thank you so much Never_give_up1 and whopper!!!!!

Yes the Same thing is happening to me on the variance question especially when I do Becker final exam…but so glad I found out before the real one coming up!!!

AUD 82(08/12/2013)
BEC 82(08/28/2013)
FAR 76(11/27/2013)
REG 76(12/06/2013)
Becker Review and Final review.
You are only as strong as your weakest link.

[Anonymous]

Thank you for the question. This was good (my brain is on fire).

[Whopper Warrior]

@nevergive_up – I feel you on that.BEC is just so much of so little random things it can get overwhelming.

Your answer of 12,000 Comes from: .5 * 24,000 (std)

What really helped me for variance analysis was thinking of this:

When it comes to price, I care about what I actually paid (price = actual use) (dont tell me MSRp, tell me the factual price)

When it comes to use, I care what I should of used. (std rate =efficiency) (my contractor said it would be a week, and we are at week 3)

ALSO: Just breath. When taking my actual exam I could not get a variance answer, flagged it, and went back. Without the stress of time (I whizzed through some others and had a good 5 minutes to stay on track) I was able to find the correct answer and explain why all of the three others were wrong.

ALL 4 parts passed summer 13
Ethics October 13
Experience (waiting)

Becker Only

[Anonymous]

@Whopper Warrior, what was your strategy for FAR and REG. If you don't mind sharing? I see you more than annihilated these two parts. Any help concurring these monsters appreciated.

Sorry for the off topic. You can post the responses in the relevant sections if you have time.

[Whopper Warrior]

FAR – Journal Entries, think of a transaction and envision how that transaction would best be represented. I still have to write a journal entry out to remember if a discount on a note is a a debit or credit at inception.

Cash 9

Discount 1

payable 10

Its a debit. Journal Entires and MR. T (T accounts). Also the question concepts are easy, the details are not. Read Carefully.

REG – I am a professional tax accountant. I have done taxes for people with EIC and for people who had an AGI nearing the 7 digit range; as well as partnership and corporation experience. I grant my REG score to this, and this alone because I became very familiar with the rules surrounding tax law by working in the field.

Using Becker:

Videos (once for the promise, tried to write, but sometimes it just played in the background, as I did house chores)

MC Questions (twice per chapter)

progress test (50 question cumulative progress tests very chapter on my second time through)

Struggle on a Subject: Read the Becker Notes (Not my learning style), turn to professor Google and A71

3 Days before: final exam #1

2 days before: final exam #2

1 day before: Rework all the sims

On average about 4 – 5 hours a day which is a lot, but I am in a transition period between jobs and am living with my parents which is a huge help so I look at passing all parts as my full time job (Recent College Graduate).

Everyone's learning style is different, but I think MC should be utilized the most and then turn to reading (seeing) or the videos (audio) for second hand help depending on your needs. Most importantly do not memorize (except for high level like capital vs operating lease) , understand. Also another thing, I see a lot of comments of people letting themselves go; I am sure it is different for people studying AND working full time, but try to get some exercise in every day like walking to the end of the street and back. The mind is part of the body, and you are only as strong as the weakest link; not saying go crazy, but try to stay active.

ALL 4 parts passed summer 13
Ethics October 13
Experience (waiting)

Becker Only

[Anonymous]

Thank you, For such a thorough post,

[Author]

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