[jeff]

Welcome to the Q2 2015 CPA Exam Study Group for BEC.

Economic Cycles (All Across the Land)https://www.another71.com/economic-cycles-rap/

Posted by Another71 on Thursday, November 6, 2014

Free NINJA: https://www.another71.com/cpa-exam-study-plan/

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

[nika_cpa]

110 hrs – 100 hrs (standard allowed) = 10 hrs extra worked

10 hrs x $15 standard rate = $150 unfav. var.

Becker self-study, Wiley Test Bank and books, Becker final review. NINJA MCQ bank and NINJA notes for BEC only!

AUD - PASSED!
FAR - PASSED!
REG - PASSED!
BEC - PASSED!

[Anonymous]

Formula = Std rate (Actual hrs – Std Hrs)

therefore you have = 15 (110- (1*100)) = $150

[amaffei]

Thanks Dee. The formula in my book states Std rate (Standard Hours – Actual Hours) which comes out to an unfavorable answer which confused me. Your formula has the flip – not sure if it matters – thank you for the resposne

[Anonymous]

Hi @amaffei, i am using becker and it does say Actual hrs – std hours. Just think about it this way, if you budgeted to spend $50 on gas (Standard) but ended up spending $60(actual) you are at a loss of $10 which is unfavorable. Same thought process with hours, if you budgeted 6 hours for an activity but ended up spending 10 hours you've used an extra unplanned 4 hours, which is considered unfavourable. I hope that helps!

[amaffei]

Thanks Dee. That helps.

[nika_cpa]

just to clarify Becker mnemonic calls for :

it would be S – A =D (Standard-Actual=Difference)

P=DA (price DM) Diff. x Actual quantity

U=DS (Usage DM) Diff. x Stand. rate

R=DA (Rate DL) Diff. x actual hrs

E=DS (Efficiency DL) Diff x stand. rate

But obviously you should use common sense when determining favor. vs unfov. variances….if used more actuan then unfav, or if your actual price is less then favor. and etc. I hope this helps!

This mnemonic is the life saver during exam. But I only got one variance question on the actual exam.

Becker self-study, Wiley Test Bank and books, Becker final review. NINJA MCQ bank and NINJA notes for BEC only!

AUD - PASSED!
FAR - PASSED!
REG - PASSED!
BEC - PASSED!

[amaffei]

Thanks Nike CPA …..what do u suggest I know going into the exam ….just throw out the main topics and specifications of that topic if possible….thanks

[jeff]

NINJA Christie: Moving on from BEC Failure

"I failed. Again. I went through all of the emotions; wanting to cry, telling my husband I was going to give up and…

Posted by Another71 on Saturday, May 30, 2015

https://www.another71.com/cpa-exam-score-release-failure-not-option/

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

[Troblin]

Can someone help with this question? I can barely even understand the concept being tested..

A department adds material at the beginning of a process and identifies defective units when the process is 40% complete. At the beginning of the period, there was no work-in-process. At the end of the period, the number of work-in-process units equaled the number of units transferred to finished goods. If all units in ending work-in-process were 66-2/3% complete, then ending work-in-process should be allocated as follows:

A.

50% of all normal defective unit costs

B.

40% of all normal defective unit costs

C.

50% of the material costs and 40% of the conversion costs of all normal defective unit costs

D.

None of the normal defective unit costs

FAR: 85(11/22/2014) - Becker(full)/Ninja MCQ (5 day cram)
AUD: 79 (2/1/2015) -Becker/Ninja MCQ/Ninja Notes
REG: 84(4/19/2015) -Becker/Ninja MCQ/Ninja Notes
BEC: 83 (7/13/2015) -Becker/Ninja MCQ/Ninja Notes

Date I Got My Life Back!: 8/4/2015 🙂

[Troblin]

Can someone provide an explanation on why the answer is B opposed to A? I see the explanation, but I don't feel that I am grasping it properly.

Based on potential sales of 500 units per year, a new product has estimated traceable costs of $990,000. What is the target price per unit to obtain a 15% profit margin on sales using the traditional markup calculation?

A.

$2,329

Correct

B.

$2,277

C.

$1,980

D.

$1,935

FAR: 85(11/22/2014) - Becker(full)/Ninja MCQ (5 day cram)
AUD: 79 (2/1/2015) -Becker/Ninja MCQ/Ninja Notes
REG: 84(4/19/2015) -Becker/Ninja MCQ/Ninja Notes
BEC: 83 (7/13/2015) -Becker/Ninja MCQ/Ninja Notes

Date I Got My Life Back!: 8/4/2015 🙂

[hellosunshine]

@Troblin,

500 units,

500 units times X units = Sales revenue

$990,000 cost,

15% profit margin which means the profit is 15% of the sales revenue

You can solve this with an equation

500X – 990,000 = .15(500X)

500X – 990,000 = 75X

425X = 990,000

990,000/425 = $2329.41

So… I got the same answer as you 🙁

BEC - 84 (5/29/15)
FAR - 77 (8/14/15)
AUD -
REG -

[nika_cpa]

Troblin what is the correct answer to your previous problem? I would think it is D, but I am not sure:)

Becker self-study, Wiley Test Bank and books, Becker final review. NINJA MCQ bank and NINJA notes for BEC only!

AUD - PASSED!
FAR - PASSED!
REG - PASSED!
BEC - PASSED!

[hellosunshine]

BEC - 84 (5/29/15)
FAR - 77 (8/14/15)
AUD -
REG -

[Troblin]

@ hellosunshine ugh.. yah that was my calculation as well. The solution stem computes the per unit traceable costs – 990,000/500 = 1980 and allocates a 15% markup on it = 1980*1.15 = 2277. That doesn't seem right to me, but I haven't had a solid math class in like 10 years, so my algebra may be a little shaky.

@nikecpa I think that the answer was A. I forgot the explanation, but it went something like this. Defective units are identified when WIP is 40% complete. No WIP at the beginning of the period, and WIP was 66% complete at the end of the period, thus defective units were identified. Since WIP units = the # of units transferred to FG, i guess it is assumed that 50% defective units allocate to WIP and 50% allocate to FG.

If I got this question on the exam, I'd probably just guess.. haha.

FAR: 85(11/22/2014) - Becker(full)/Ninja MCQ (5 day cram)
AUD: 79 (2/1/2015) -Becker/Ninja MCQ/Ninja Notes
REG: 84(4/19/2015) -Becker/Ninja MCQ/Ninja Notes
BEC: 83 (7/13/2015) -Becker/Ninja MCQ/Ninja Notes

Date I Got My Life Back!: 8/4/2015 🙂

[nika_cpa]

@ hellosunshine I am assuming under 990,000 all traceable costs they assume total costs. Then 15% markup makes sense. I did the same calculation like you, but our calculation assumes that 990,000 is variable cost only. This problem is not properly worded IMHO:)

Becker self-study, Wiley Test Bank and books, Becker final review. NINJA MCQ bank and NINJA notes for BEC only!

AUD - PASSED!
FAR - PASSED!
REG - PASSED!
BEC - PASSED!

[Author]

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