[jeff]

Post by Another71.

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

[Anonymous]

Don't know if this is the right reasoning, but this is how I calculated the actual profit:

@cpa2b — the fixed overhead for the actual isn't $210k; you have to divide 210 and 70 to get $3 a unit. Then multiply $3 and $60k to get actual fixed OH of $180

Sales $660

Materials ($180)

Var conv ($120)

Fixed OH ($180)

Selling ($105)

The actual profit is $75k

[Anonymous]

I guess thats why its called absorption costing, the unsold units with Fixed OH of 10,000 units $3 each got absorbed and is still sitting in ending inventory.

[bigbuk]

i just purchased the ninja mcq for bec after i went through full becker twice, and after going through 30 mcq for each section im only scoring about 65% for each section, is this about normal? of course the questions ninja asked are indeed majority different but still you would think i would be scoring higher. Also, can someone please clarify that PURE DADS for variances is just for non OH variances? I thought that the Std-Act=Difference would apply to OH variances but it seems like its actually the opposite..

[Anonymous]

Jasper Company has a payback goal of 3 years on new equipment acquisitions. A new sorter is being evaluated that costs $450,000 and has a 5-year life. Straight-line depreciation will be used; no salvage is anticipated. Jasper is subject to a 40% income tax rate. To meet the company’s payback goal, the sorter must generate reductions in annual cash operating costs of

A. $150,000

B. $60,000

C. $100,000

D. $190,000

Anybody who can answer this question and explain how it was calculated?

[CPA2B_NJ]

@CPA Title in 2015 – Thanks. I guess I was tripping because I was thinking that the fixed cost wouldn't change no matter how many units were actually produced. I got it now. Thanks

FAR - 50, 78
BEC - 67, 72, 75
AUD - 72, 80
REG - 70, 85

To God be the glory! Forever, amen!

NJ License

[golfball7773]

@cpaby2015 – I have been staring at the problem and I have no clue either…..

FAR: 63, 55, 62
REG: 65, 77*
AUD: Fail, 64, 71
BEC: 72, 74, 81

*expired

[waffle_house]

Can someone help me explain the answer to this question in Ninja MCQ:

A company is considering outsourcing one of the component parts for its product. The company currently makes 10,000 parts per month. Current costs are as follows:

Per Unit Total

---

---

Direct materials $4 $40,000

Direct labor 3 30,000

Fixed plant facility cost 2 20,000

The company decides to purchase the part for $8 per unit from another supplier and rents its idle capacity for $5,000/month. How will the company's monthly costs change?

A.Decrease $15,000

B.Decrease $10,000

C.Increase $5,000

D.Increase $10,000

Why is the answer C?

[waffle_house]

Sorry about the format above.

[OnMyWay732]

@wafflehouse

If they make the product, they spend $90,000.

If they outsource, they're buying the product for 80,000. You must add in the fixed costs since that won't be avoided by outsourcing. You're now at 100,000. BUT they rent out the space for 5000. 100,000-5,000 = 95,000, which is a $5,000 increase from 90,000

AUD - July 2014 - 76
REG - August 2014 - 82
FAR - November 2014 - 78
BEC - January 2015 - 81

DONE!!!!

Used Becker online. Who needs a text when you can burn your eyes out staring at the screen for months on end?

"Let me tell you something you already know. The world ain't all sunshine and rainbows. It is a very mean and nasty place and it will beat you to your knees and keep you there permanently if you let it. You, me, or nobody is gonna hit as hard as life. But it ain't how hard you're hit; it's about how hard you can get hit, and keep moving forward. How much you can take, and keep moving forward. That's how winning is done!"

[Anonymous]

@ waffle house — I was in the middle of writing out the computation for each scenario, but onmyway summed it up perfectly; it will cost them an additional $5k to outsource.

[Anonymous]

Answer to my question by the way is D.

[Anonymous]

An increase in the market supply of beef would result in:

a.decrease in the demand for beef

b.decrease in the quantity of beef demanded.

c. Increase in the quantity of beef demanded.

d. Increase in the price of beef.

A. doesn't make sense because if their was an increase in the market supply why would demand go down.

B. (my answer)

C. correct answer

D. if their is an increase in the market supply of beef this would cause the price to DECREASE because their would be an abundance.

I don't understand why C is the correct choice and why mine is wrong. I really only picked it because I didn't think the other 3 were correct.

[Anonymous]

I suppose my logic for A could be reversed… why would an increase in the market supply of beef occur? Probably because their was an increase in the quantity of beef demanded. lol ok so I answered my own question 🙂 I will leave it posted for you all.

[Anonymous]

These “calculate the cost of debt” questions are driving me crazy. Eventually this stuff is going to click……..hopefully.

[Anonymous]

Finally scheduled my exam on the 26th of Feb before loosing more days. Planning to take it on the 28th but I waited too long to decide now I lost 2 days of review. Ugh! I'll give it a shot anyway.

[Author]

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