[jeff]

BEC Resources:

Free BEC Notes & Audio – https://www.another71.com/cpa-exam-study-plan

BEC 10 Point Combo: https://www.another71.com/products-page/ten-point-combo

BEC Score Release: https://www.another71.com/cpa-exam-scores-results-release

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

[Amay]

@joch! I can't say I haven't been there..good for you for finally realizing you were wasting time. KILL IT!!!! 🙂

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[UCMCPA]

BEC questions are taking me so much longer to do… I've done 25 in the past 45 minutes and missed a lot of them 🙁

FAR - 84
AUD - 94
REG - 86
BEC - 86

[UCMCPA]

BEC questions are taking me so much longer to do… I've done 25 in the past 45 minutes and missed a lot of them 🙁

FAR - 84
AUD - 94
REG - 86
BEC - 86

[Amay]

Bruell Electronics Co. is developing a new product, surge protectors for high-voltage electrical flows. The following cost information relates to the product.

Unit Costs

Direct materials

$3.25

Direct labor

4.00

Distribution

.75

The company will also be absorbing $120,000 of additional fixed-costs associated with this new product. A corporate fixed charge of $20,000 currently absorbed by other products will be allocated to this new product.

If the selling price is $14 per unit, the breakeven point in units (rounded to the nearest hundred) for surge protectors is:

a. 15,000 units.

b. 23,300 units.

c. 20,000 units.

d. 10,000 units.

Can somebody tell me why the $20,000 of allocated fixed costs are irrelevant? I thought you were supposed to include total fixed costs in your BEP calcs. Answer is C but I had chosen B. Thanks!

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Amay]

Bruell Electronics Co. is developing a new product, surge protectors for high-voltage electrical flows. The following cost information relates to the product.

Unit Costs

Direct materials

$3.25

Direct labor

4.00

Distribution

.75

The company will also be absorbing $120,000 of additional fixed-costs associated with this new product. A corporate fixed charge of $20,000 currently absorbed by other products will be allocated to this new product.

If the selling price is $14 per unit, the breakeven point in units (rounded to the nearest hundred) for surge protectors is:

a. 15,000 units.

b. 23,300 units.

c. 20,000 units.

d. 10,000 units.

Can somebody tell me why the $20,000 of allocated fixed costs are irrelevant? I thought you were supposed to include total fixed costs in your BEP calcs. Answer is C but I had chosen B. Thanks!

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Anonymous]

Hey, I have a variance question. Generally if standard is more than actual it's a favorable variance. Does that work by overhead too? I would assume yeah but I vaguely remember reading no. Thanks

[Anonymous]

Hey, I have a variance question. Generally if standard is more than actual it's a favorable variance. Does that work by overhead too? I would assume yeah but I vaguely remember reading no. Thanks

[Anonymous]

@Amay I would love an answer to your question as well. I've gone through that problem as well and couldn't figure out why the $20,000 was irrelevant, especially because they mention that it will be charged to the new product. Thanks in advance for anyone who can explain this.

[Anonymous]

@Amay I would love an answer to your question as well. I've gone through that problem as well and couldn't figure out why the $20,000 was irrelevant, especially because they mention that it will be charged to the new product. Thanks in advance for anyone who can explain this.

[Jennifer241]

@Esther Yes, instead of saying Standard I substitute it for Target. If the actual costs are below my targeted costs then I saved money and that is favorable!

AUD - Jan 9,13 Pass
REG - Aug 30,13 Pass
BEC - Oct 26,13 Pass
FAR - Dec 4,13 Pass

Licensed CPA in the state of Oregon

[Jennifer241]

@Esther Yes, instead of saying Standard I substitute it for Target. If the actual costs are below my targeted costs then I saved money and that is favorable!

AUD - Jan 9,13 Pass
REG - Aug 30,13 Pass
BEC - Oct 26,13 Pass
FAR - Dec 4,13 Pass

Licensed CPA in the state of Oregon

[UCMCPA]

The 20,000 of fixed costs are currently allocated to other products, they are NOT additional fixed costs so you would ignore them for the overall break even. The question asks for the number needed at the company level, that cost was already being incurred elsewhere.

That's my thinking in ignoring it.

FAR - 84
AUD - 94
REG - 86
BEC - 86

[UCMCPA]

The 20,000 of fixed costs are currently allocated to other products, they are NOT additional fixed costs so you would ignore them for the overall break even. The question asks for the number needed at the company level, that cost was already being incurred elsewhere.

That's my thinking in ignoring it.

FAR - 84
AUD - 94
REG - 86
BEC - 86

[Anonymous]

@Jennifer241 so the thinking behind it is the same as the “simple” variances – if actual is lower it's always favorable. Correct?

[Anonymous]

@Jennifer241 so the thinking behind it is the same as the “simple” variances – if actual is lower it's always favorable. Correct?

[Author]

Replies