[jeff]

Welcome to the BEC CPA Exam study group for July & August 2018 exams. 🙂

Please introduce yourself & when you’re taking your exam (approximate timeframe).

BEC Study Group Links and Resources:

1. NINJA Monthly – Full BEC Course for $67/mo
2. How to Study for BEC with NINJA Only
3. How to Pass BEC in 20 Days
4. How to Retake BEC After Failing
5. Video: Study Advice for BEC
6. CPA Reviewed Podcast
7. CPA Exam Score Release Dates
8. NINJA MCQ Trending vs Actual BEC Scores
9. I Passed the CPA Exam!
10. I Passed BEC!
11. NINJA BEC Written Communications List by Topic
12. Free Downloads: NINJA BEC

[Ryan]

Does anyone know why 22,500 is the correct answer? I keep getting 40,500.

Q) A company predicted that it would manufacture 10,000 units of finished goods during March. The direct labor standards indicated that each unit of finished goods requires 2.4 direct labor hours at a standard wage of $20 per hour, totaling $48.00 per finished good unit. During March, the company actually made 9,000 units of finished goods. Production used 2.5 labor hours per finished unit, and the company actually paid $21 per hour, totaling $52.50 per unit of finished product. What amount is the company’s direct labor rate variance for March?

Answer: 22,500

[Anonymous]

DLRV = AQ (SP-AP)

Actual Quantity of Hours = 2.5hrs/unit x 9000 units = 22,500
SP = 20
AP = 21

22,500(1) = 22,500

[DoubleBogey]

Voltoco, Inc. has a number of circumstances that require determination of present value (PV) or future value (FV) amounts. Voltoco's weighted average cost of capital is 8%, and its borrowing cost is 6%. For each of the arrangements described below, use the Time Value of Money tables as needed to determine the required value and enter it into the space provided. Round to the whole number.

1. Voltoco acquired a new machine under a deferred payment arrangement that provides payment of $12,000 at the end of three (3) years. At what amount should Voltoco record the new machine?
10,800
2. Voltoco entered into a capital lease that requires fixed payments of $12,000 at the end of each of the next five (5) years. Voltoco's borrowing cost is less that the lessor's implied interest rate. What amount should Voltoco record as a lease liability?
50,544
3. Voltoco entered into a debt obligation for $100,000, which requires repayment in full at the end of 10 years. To ensure its ability to repay when due, Voltoco wishes to make equal annual payments at the end of each year into a sinking fund that will earn 8% per year compounded. What amount should Voltoco contribute to the sinking fund each year?
6,903
4. Voltoco acquired new production equipment that it expects will save $5,000 per year in production-related cash expenditures at the end of each of the next eight (8) years. At the end of the eight (8) years, it expects to sell the used equipment for $5,000. What is the present value of Voltoco's expected cash inflow from this equipment?
31,435

Why do the first 3 use the cost of borrowing of 6% and part 4 uses the 8% WACC?

[Anonymous]

I'd guess it's because there First 3 describe scenarios where funds are borrowed. The 4th one implies that the funds were paid at the acquisition date, so should be discounted at the WACC. Didn't encounter any questions like this in GLEIM.

[hopefulcpa2016]

Exam Monday — still struggling — this is so frustrating!

[NZBJDY]

I can’t pass BEC and it makes me so so mad!!! I need Help with BEC exam!! I have studied BEC with Becker, CPAEXCEL & Roger! And still making 69!!! What should I do? I am very bad with writing ✍️ & stimulations!! I studied, did all the MCQ & Sims, and still not passing! I am weak in writing and Sims!!! 😰😰😰😰😭😭😭😭😭😭

[NZBJDY]

How should I study for BEC? This section is just killing me!!!

[hopefulcpa2016]

@nazlii_nazz — what are you scoring in the MCQs when you are reviewing? If you are scoring high there, but not in the exam – are you just remembering which answer choice is the correct one? BEC is the hardest I think. In the same boat. Good luck to you!!

[NZBJDY]

@hopefulcpa2016

I Make 85-90, No,I studied the BEC book 3 times already!I know anything in the book! I made my own flashcards! the exam is not even close to Becker, Roger, CPAExcel! I just bought Gleim TB and going over everything one more time! My issue is writing part and Sims!!! Eng is my second language and I am bad in the writing! on exam I finish both MCQs testlets in 1 hour, and leave rest for the sims and writing! But still I can’t get it right!

😭😭😰😨😭😰😨😭

[DoubleBogey]

Hoping for Econ heavy exam Wednesday. Glaring weakness is higher level IT and the different types of costing. Final push here we go!!!!!!!!!!!!!!!!!!! MCQ central the next 2 days

[hopefulcpa2016]

Just took the Exam. Wasn't too bad, but felt more prepared than I have before. The SIMs weren't as bad as I originally expected, but one written was more difficult for me. One of the MCQs I do believe had an error in the original information. Good luck all! Hopefully this will be my last time on this board!

[itooshallpass]

7 days left for me! I plan to rewrite my notes, at least 1 chapter per day (7 chapters in Roger), and do as many MCQs as possible. Gonna be tough cause I'm moving house this week, ugh. Like someone else said, I'm hoping for lots of econ questions. Cost accounting is definitely my weak spot. Fingers crossed..

[Anonymous]

Nanjones Company manufactures a line of products. Below are planned manufacturing data and actual data for November.
Year 1 Planning Date
Annual November
Fixed MOH 1,200,000 100,000
Variable MOH 2,400,000 220,000
Direct Labor Hrs 48,000 4,000
Machine Hrs 240,000 22,000

Date for November
DL Hrs (ACTUAL) 4,200
DL Hrs (Plan Based on Output) 4,000
Machine Hrs (Actual) 21,600
Machine Hrs (Plan based on Output) 21,000
FOH 101,000
Var MFG OH 214,000

Calculate Fixed manufacturing overhead for November?

Solution per Becker:
Fixed overhead rate 1,200,000/240,000 = $5
Amount of fixed manufacturing overhead planned for November = 100,000
STD production for fixed overhead = 20,000 hours (100,000/5)

Applied Fixed Overhead =
Standard Fixed OH * Actual Production
5 * 21000 = 105,000
Question why did we use 21,000 for actual production? is this given in the facts above? Machine Hrs (Plan based on Output) 21,000 I though this was the plan not actual?
Budgeted OH based on STD Hours
Standard Fixed OH * STD Production
5* 20000 = 100,000

Answer is 5,000

[itooshallpass]

What formulas/ratios do we really “need” to memorize? So far I have 8 pages of them and that doesn't even include cost accounting yet. Don't see how it can be done. Any guidance?

[CPYAYYY]

I finally started studying 🙂

[Author]

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