[jeff]

Welcome to the Q1 2016 CPA Exam Study Group for BEC.

Some BLITZ videos to help your exams: https://www.another71.com/ninja-blitz

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

[Zyx]

I'm struggling and need help to understand variances. I don't understand this question why stand hours is 2,100 hrs. I see the explanation in ninja but I still cannot understand;

Baby Frames, Inc., evaluates manufacturing overhead by using variance analysis. The following information applies to the month of May:

Actual Budgeted
———– ————————
Number of frames manufactured 19,000 20,000
Variable overhead costs $4,100 $2 per direct labor hour
Fixed overhead costs $22,000 $20,000; $1 per unit
Direct labor hours 2,100 hours 0.1 hour per frame
What is the variable overhead efficiency variance?
A. $200 favorable

B. $200 unfavorable

C. $400 favorable

D. $400 unfavorable correct

Budgeted DLHs are based on budgeted hours for actual product output (19,000 frames), not what Baby Frames thought it would produce (i.e., 20,000 frames). The idea is to use the budgeted rate (0.1 hour per frame) but multiply it by the actual level of production (19,000 frames).

I used 2000 as standard hrs (20,000 budgeted * 0.1 hr per frame). Why isn't correct??

REG: 77 x2
BEC: 81 x3
FAR: 68 retake 10/1
AUD: 8/27

[monikernc]

Var. Overhead Efficiency variance = std rate(act qty – std qty) and in this problem variable overhead is based on direct labor hours.
std rate = $2
actual qty = 2100 dl hours
Std qty = .10 * 19,000 = 1900, always compute the standard quantity based on the actual amout produced. So for 19,000 units at .1 hour per unit they should have used 1900 hours. The standard rate for dl hours is .10 hours per unit.

The variance is $2(2100-1900)= $400 unfavorable because they used 200 hours more than the standard says they should have to produce 19,000 units, at $2 an hour.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[Zyx]

@monikernc, thank you! believe or not, people say BEC is the easiest bu not for me. I passed REG at 2nd attempt. For BEC it is gonna be my 3rd try!

REG: 77 x2
BEC: 81 x3
FAR: 68 retake 10/1
AUD: 8/27

[monikernc]

I am having a hard time with bec, too. But still hoping I will pass on first try. Keep asking questions it keeps me going.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[Zyx]

@monikernc, you will!
Here is another question I'm really having problems with;

As for by-product questions, how can we determine when to include the profit as a part of the production costs of the primary product or reduce cost of goods sold by the proceeds from sale of by-product?

REG: 77 x2
BEC: 81 x3
FAR: 68 retake 10/1
AUD: 8/27

[monikernc]

@zyx11 i wish i knew… seriously, this is so confusing and i have looked at it several times.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[Gabriella]

Could someone give me examples or detail on the differences between systems, program, operator and user documentation?
I keep mixing up systems and program.

Also, exactly who (or what IT component) has access to passwords?

[Zyx]

@monikernc, I hear you, feel the same way. As I have been doing mcq, I'm more like memorizing this area. I want to have a solid understanding but still so confused. If I see by-product questions that I have not seen, I will be blank!! Thanks for the link!

@Test.Taker, I suck at IT so I try to put it in pictures that helps me remember those stuffs.
System is software where programs run on. This might not be really correct but let say iphone, ios is a system. Apps on your phone is program. Operator is Apple. User document is the little booklet that comes with the phone to assist you (iphone never has it). What I do is I search each word on internet then draw a memorable picture for each word. It is easy to remember that when you can see actual pictures. Hope it helps..

REG: 77 x2
BEC: 81 x3
FAR: 68 retake 10/1
AUD: 8/27

[monikernc]

@zyx11 I feel like I can only answer the ninja questions for some of these topics because everything is surface treatment and no deep dives into subject areas. I am finally starting to retain many of the formulas after 7 weeks of studying because I can't just memorize something. I have to see it many times to learn and remember.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[FAR_WARS]

A company uses process costing to assign product costs. Available inventory information for a period is as follows:

Beginning Inventory: 0 units
Started during the period: 15,000 units (Material Cost: $75,000 , Conversion Cost: $55,500)
Transferred out: 13,500 units
End of period: 1,500 units

The ending inventory was 25% complete as to the conversion cost. 100% of direct material was added at the beginning of the process. What was the total cost transferred out?

a. $130,500
b. $126,973
c. $121,500
d. $117,450

Hint:
1) compute cost of materials transferred out.
2) compute conversion costs transferred out.
3) compute total costs transferred out.

FAR- 80
BEC- 75
AUD- 78
REG- ?

[payaza2000]

Just Started BEC 1 in Becker so I am going to take a wild guess:

Materials: $75,000
+Conversion Cost: $55,500
=130,500

$130,500/15000 (started during period)=8.7

8.7 * 13500 (DM 75%) =88,088
+ 8.7 * 3375 (25% of 13500)=29363
= Transferd Out during Period $117450

FAR 5/6/2015- 84
REG 8/3/2015 - 87
AUD 10/25/2015- 69 1/20/2016 -75
BEC 2/26/2016- 80

Thank you God

[FAR_WARS]

1) Compute cost of materials transferred out.
13.5 units transf out *$5/unit
= $67.5

2) Compute conversion costs transferred out.

13.5 units transf out
+.375 (end inv 25% complete)
=13.875 (Equiv Units, used to calculate rate)

13.5 units*$4/unit= $54

3) compute total costs transferred out.
$67.5+$54 = $121.5

FAR- 80
BEC- 75
AUD- 78
REG- ?

[payaza2000]

@FAR_WARS

How would you from the question know whether you are using weighted average or FIFO?

FAR 5/6/2015- 84
REG 8/3/2015 - 87
AUD 10/25/2015- 69 1/20/2016 -75
BEC 2/26/2016- 80

Thank you God

[FAR_WARS]

I think b/c beg inv = 0, it does not matter?

FAR- 80
BEC- 75
AUD- 78
REG- ?

[FAR_WARS]

A job order cost system uses a predetermined fixed factory overhead rate based on normal activity and expected fixed cost. At the end of the year, underapplied fixed overhead might be explained by which of the following situations?

Actual volume, Actual fixed costs
a. Greater than normal, Greater than expected
b. Greater than normal, Less than expected
c. Less than normal, Greater than expected
d. Less than normal, Less than expected

FAR- 80
BEC- 75
AUD- 78
REG- ?

[Author]

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