Help with question 8

Smiah
Smiah Registered Posts: 8
in Management Accounting: Decisions and Control
Hi everyone,

I struggle with this question. Can someone explain it to me and help me work this out. I normally good at ABC but struggle with thaws types of questions which include batch and set ups. (This is a made up question which is in the same format in the exam. Numbers are different).

Thanks

Sha

Comments

  • Smiah
    Smiah Registered Posts: 8
    edited February 2022
    This is the updated one
  • Smiah
    Smiah Registered Posts: 8
    This is the updated one
  • Smiah
    Smiah Registered Posts: 8
    This is the updated one
  • Krisso
    Krisso Registered Posts: 124 Dedicated contributor 🦉
    I had a question similar to this yesterday and here is how I approached it. The bold are totals of the drivers to divide the cost pools by. I have labelled 1,2,3 to show what driver I used against each cost pool


  • Smiah
    Smiah Registered Posts: 8
    Omg thank you so much. I kept on getting this format in the exam and I couldn’t allocate it due to it being different to the ones in the practice one. Had it for 3 exams in a row. The batches and set ups just confused me.
  • Krisso
    Krisso Registered Posts: 124 Dedicated contributor 🦉
    I'm not saying I got it right but thats how I approached it. It turned me around a bit yesterday as I didn't have this format when I took my first attempt at this exam
  • Smiah
    Smiah Registered Posts: 8
    Oh ok. I had the total set ups and batches with costs. So I wasn’t sure if I needed to times these. Normally it’s empty for us to work out the the amount per set up
  • Smiah
    Smiah Registered Posts: 8
    For materials and inspection I could not get it to allocate equally. I did the same as you did. I was wondering if the total batch figures and set ups need to be in the workings too?
  • Krisso
    Krisso Registered Posts: 124 Dedicated contributor 🦉
    I rounded the last results on inspection and had to manually type the last result to increase it as your figures are based off something you made up as opposed to one that would round better in the exam

    Materials have rounded in whats showing but underneath would be the pence difference


  • Smiah
    Smiah Registered Posts: 8
    In the exam I had big differences. I could not get it to allocate. I used the method used here but it didn’t work. I don’t understand why they have total set ups and total batch in the same table as the final allocated costs
  • Krisso
    Krisso Registered Posts: 124 Dedicated contributor 🦉
    As I say there is a chance I have got my answer wrong but if on following what I did you couldnt get it to allocate, I am not sure what you did wrong

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