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Answers
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Fundamentals Level – Skills Module, Paper F5 Performance Management Section A 1
A
Division A: Profit = $14·4m x 30% = $4·32m
Imputed interest charge = $32·6m x 10% = $3·26m Residual income = $1·06m
Division B: Profit = 8·8m x 24% = $2·112m
Imputed interest charge = $22·2m x 10% = $2·22m Residual income = $(0·108)m 2
D
All costs are included when using life cycle costing. 3
A
This is the definition of a basic standard. 4
B
The first statement is describing management control, not strategic planning. 5
C
Number of units required to make target profit = fixed costs + target profit/contribution per unit of P1.Fixed costs = ($1·2 x 10,000) + ($1 x 12,500) – $2,500 = $22,000. Contribution per unit of P = $3·20 + $1·20 = $4·40. ($22,000 + $60,000)/$4·40 = 18,636 units. 6
A
Product
A B C Selling price per unit $160 $214 $100 Raw material cost
$24 $56 $22 Direct labour cost at $11 per hour $66 $88 $33 Variable overhead cost $24 $18 $24 Contribution per unit
Direct labour hours per unit –––$46 –––$52 –––$21 Contribution per labour hour – 6 3 $7·67
$6·50– 8
–$7 Rank
2 4 3 Normal monthly hours (total units x hours per unit)
1,800
1,000
720
If the strike goes ahead, only 2,160 labour hours will be available.
Therefore make all of D, then 1,360 hours’ worth of A (2,160 – 800 hrs). 7
B
460 – 400 = 60 clients
$40,000 – $36,880 = $3,120 VC per unit = $3,120/60 = $52
Therefore FC = $40,000 – (460 x $52) = $16,080 8
B
Increase in variable costs from buying in (2,200 units x $40 ($140 – $100)) = $88,000 Less the specific fixed costs saved if A is shut down = ($10,000) Decrease in profit = $78,000
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December 2014 Answers
D $140 $40 $22 $18 –––$60 – 2 $30 1 800
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9
A
Only the first statement is correct. Traditional absorption costing tends to over-allocate costs to high volume products, not under-allocate them.
10 B
By definition, a shadow price is the amount by which contribution will increase if an extra kg of material becomes available. 20 x $2·80 = $56.
11
C
Neither statement is correct. Responsibility is not assigned solely to senior managers as, for example, in a TQM environment quality is everybody’s responsibility. In addition, standard costing can be difficult to apply in dynamic situations.
12 A
The second statement is talking about flow cost accounting, not input/output analysis.
13
D
Target 1 is a financial target and so assesses economy factors. Target 2 is measuring the rate of work handled by staff which is an efficiency measure. Target 3 is assessing output, so is a measure of effectiveness.
14 B
In comparison to participative budgeting, an advantage of non-participative budgeting is that it should be less time consuming, as less collaboration will be required in order to produce the budgets.
15
C
The target costing process always begins with the target selling price being set. The required profit is then determined and deducted from the target selling price to estimate the target cost. The target cost is then compared to the estimated current cost and the cost gap is then calculated.
16 A
This is a description of an incremental budget.
17
A
New profit figures before salary paid:
Good manager: $180,000 x 1·3 = $234,000 Average manager: $180,000 x 1·2 = $216,000 Poor: $180,000 x 1·1 = $198,000
EV of profits = (0·35 x $234,000) + (0·45 x $216,000) + (0·2 x $198,000) = $81,900 + $97,200 + $39,600 = $218,700 Deduct salary cost and EV with manager = $178,700
Therefore do not employ manager as profits will fall by $1,300.
18 B
Set-up costs per production run = $140,000/28 = $5,000 Cost per inspection = $80,000/8 = $10,000
Other overhead costs per labour hour = $96,000/48,000 = $2 Overheads costs of product D: Set-up costs (15 x $5,000) Inspection costs (3 x $10,000) Other overheads (40,000 x $2)
$ 75,000 30,000 80,000 –––––185,000 ––––––––精品 –––
Overhead cost per unit = 185,000/4,000 = $46·25
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19
A
This is an example of feedforward control as the manager is using a forecast to assist in making a future decision.
20
A
If demand is inelastic or the product life cycle is short, a price skimming approach would be more appropriate.
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Section B
1 Chair Co
(a) Learning curve formula = y = axb
Cumulative average time per unit for 8 units: Y = 12 x 8–·415
= 5·0628948 hours.
Therefore cumulative total time for 8 units = 40·503158 hours. Cumulative average time per unit for 7 units: Y = 12 x 7–·415
= 5·3513771 hours.
Therefore cumulative total time for 7 units = 37·45964 hours.
Therefore incremental time for 8th unit = 40·503158 hours – 37·45964 hours = 3·043518 hours. Total labour cost for 8th unit =3·043518 x $15 = $45·65277 Material and overheads cost per unit = $230 Therefore total cost per unit = $275·65277 Therefore price per unit = $413·47915 (b) (i)
Actual learning rate Cumulative number of seats produced 1 2 4 8
Cumulative total
hours 12·5 ? ? 34·3
Cumulative average hours per unit 12·5 12·5 x r 12·5 x r2 12·5 x r3
Using algebra: 34·3 = 8 x (12·5 x r3)
4·2875 = (12·5 x r3) 0·343 = r3 r = 0·70
The learning effect was 70% as compared to the forecast rate of 75%, meaning that the labour force learnt more quickly than anticipated. (ii) Adjusted price
The adjusted price charged will be lower than the original price calculated in part (a). This is because the incremental cost of the 8th unit will be lower given the 70% learning rate, even though the first unit took 12·5 hours. We know this because we are told that the cumulative time for 8 units was actually 34·3 hours. This is lower than the estimated cumulative time in part (a) for 8 units of 40·503158 hours and therefore, logically, the actual incremental time for the 8th unit must be lower than the estimated 3·043518 hours calculated in part (a). Consequently, total cost will be lower and price will be lower, given that this is based on cost.
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Glam Co
(a) Bottleneck activity
The bottleneck may have been worked out as follows:
Total salon hours = 8 x 6 x 50 = 2,400 each year. The capacity for each senior stylist must be 2,400 hours, which equates to 2,400 cuts each year (2,400/1). Since there are three senior stylists, the total capacity is 7,200 hours or 7,200 cuts each year. Using this method, the capacity for each activity is as follows: Assistants Senior stylists Junior stylists
Cut 48,000 7,200 9,600
Treatment 16,000 4,800 9,600
The bottleneck activity is clearly the work performed by the senior stylists.
The senior stylists’ time is called a bottleneck activity because it is the activity which prevents the salon’s throughput from being higher than it is. The total number of cuts or treatments which can be completed by the salon’s senior stylists is less than the number which can be completed by other staff members, considering the number of each type of staff available and the time required by each type of staff for each client.
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201X年12月ACCA F5考试真题答案
