[jeff]

Welcome to the Q2 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

[pyacpa49]

@Amor D

Agreed, I hate these types of questions. they give a bunch of unnecessary info and make you wade through all the nonsense to find what you need to answer the question. Basically, for usage/efficiency variances you need budgeted price, budgeted hours (in this case), and actual hours. It takes .5 hours to produce a widget, and they produced 10,000 widgets, so budgeted time was 5,000 hours. Actual time was 3,000 hours. The difference between these is 2,000 hours, and since it took less time than budgeted it is favorable. Multiply this by budgeted price and you have the usage variance.

Easiest way for me to keep things straight is to read the last sentence to find out what is being asked, figure out what I need to know, and look through the nonsense in the rest of the question to find what I need. This works as long as they don't throw any tricks in there to throw us off.

[MrsCoderedpl]

@Spartans92 Thank you! I am taking a practice exam and i'm asking my self WTF!

B 06/04/2016
A 07/30/2016
R N/A
F N/A

[aatoural]

@Spartan i am switching to another topic and then go back n re read and re do those to make sure I get it better the second time around.

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[aatoural]

Can someboday explan to me how they got the $27k EBIT? The answer is C

A company currently has 1,000 shares of common stock outstanding with zero debt. It has the choice of raising an additional $100,000 by issuing 9% long-term debt, or issuing 500 shares of common stock. The company has a 40% tax rate. What level of earnings before interest and taxes (EBIT) would result in the same earnings per share (EPS) for the two financing options?
a.
An EBIT of $10,800 would result in EPS of $7.92 for both.
b.
An EBIT of $27,000 would result in EPS of $7.20 for both.
c.
An EBIT of $27,000 would result in EPS of $10.80 for both.
d.
An EBIT of $18,000 would result in EPS of $7.20 for both.

BEC - PASSED
AUD - 8/29/16
FAR - TBS
REG - TBS

[Anonymous]

Thanks @pyacpa49. I make a T-account for variance calculation. I put all the ACTUAL info on the debit side and STANDARD on the credit side. I use this mnemonic P-U-R-E and I've memorized the formulas.

[Spartans92]

What!! what section is that from @aatoural? That seems like an outlier kind of question that should be on FAR.

BEC- PASS

[Anonymous]

Yes @aatoural. You may want to repost your question at the FAR Study Group thread and come back to us with an explanation, LOL.

[Spartans92]

Chapter 6 (Becker) is so freaking tough. Feel like I am restudying for FAR all again. I have about 6 days for final review… is that enough? Should I pay to postpone the exam until July? I feel like BEC was “easier” as I was studying but I dont feel this way anymore.
Honestly, I dont think I can take another fail anymore. But another 4 weeks may do more harm than help and it will also limit my study time for REG.

BEC- PASS

[marqzho]

My trending score for Operations Management even lower after a night of study 🙂 Now at 41%……WTH

REG 90
FAR 95
AUD 98
BEC 84

[lolo]

I took BEC on Wednesday. I asked for a calculator and received it, actually they gave me a very big one. I felt Becker prepared me well for BEC. I feel my overall exam experience went good, I would rank the difficulty of the questions based on how much I know about the questions in each testlet. As for the MCQs, they went easy, easy, medium-hard, I spent about 2 hours on MCQs and felt prepared for them. As for the WC section, I left an hour and felt that was plenty of time that I was able to do the tasks comfortably. A peace of advice, know the computations and the concepts covered in your material and you will just do fine! don't overestimate nor underestimate this exam!

My Nick name is sunshine, but the fact is I have not been in touch with it since I started this CPA exam! IT HURTS

AUD - ✔ Passed Becker self study!
BEC - ✔ Passed Becker self study!
FAR - ✔ Passed Becker self study!
REG - TBD

[Anonymous]

Congrats Sunshine for finishing your BEC test. It sounds like you handled your BEC test so well.

Can anyone please help me with this costing problem? How did they come up with $480,000 COGS in the reported income column?

View post on imgur.com

Thanks!

[Anonymous]

I thought the service industry being referred to this problem was like a CPA or law firm, or auto repair service.
https://imgur.com/Vn7wtRu

Can someone please give me some examples of service-oriented companies?

Thanks again.

(I'm panicking because I'm averaging 43% on Operations Management.)

[lolo]

@Amor D, thanks I hope so but we shall see on the 24th 🙂

Regarding your question, I could not have any thought why it is 480 not 510! its weird I think the answer is not right!

My Nick name is sunshine, but the fact is I have not been in touch with it since I started this CPA exam! IT HURTS

AUD - ✔ Passed Becker self study!
BEC - ✔ Passed Becker self study!
FAR - ✔ Passed Becker self study!
REG - TBD

[pyacpa49]

@Amor D because it is absorption costing, the fixed manufacturing costs are inventoried. Since they sold 60,000 out of 70,000 units, you would only allocate 6/7 of the fixed costs to COGS. the rest would have been included in inventory and expensed when the rest of the units are sold. So (6/7)*210000= $180,000 for fixed manufacturing costs. 60,000*3=$180,000 for materials. And 60,000*2=$120,000 for variable manufacturing costs. 180,000+180,000+120,000=480,000.

[lolo]

@pyacpa49, Right just forgot!

My Nick name is sunshine, but the fact is I have not been in touch with it since I started this CPA exam! IT HURTS

AUD - ✔ Passed Becker self study!
BEC - ✔ Passed Becker self study!
FAR - ✔ Passed Becker self study!
REG - TBD

[Author]

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