ACCA F5考試真題答案

Answers Fundamentals Level Skills Module, Paper F5Performance ManagementDecember 2014 AnswersSection A1ADivision A: Profit = $144m x 30% = $432mImputed interest charge = $326m x 10% = $326mResidual income = $106mDivision B: Profit = 88m x 24% = $2112mImputed interest charge = $222m x 10% = $222mResidual income = $(0108)m2345DAll costs are included when using life cycle costing.AThis is the definition of a basic standard.BThe first statement is describing management control, not strategic planning.CNumber of units required to make target profit = fixed costs + target profit/contribution per unit of P1.Fixed costs = ($12 x 10,000) + ($1 x 12,500) $2,500 = $22,000.Contribution per unit of P = $320 + $120 = $440.($22,000 + $60,000)/$440 = 18,636 units.6AProductABCDSelling price per unitRaw material costDirect labour cost at $11 per hourVariable overhead costContribution per unit$160$24$66$24$214$56$88$18$100$22$33$24$140$40$22$18$46$52$21$60Direct labour hours per unitContribution per labour hourRank6$76728$65043$72$3013Normal monthly hours (total units x hours per unit)1,8001,000720800If 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).78B460 400 = 60 clients$40,000 $36,880 = $3,120VC per unit = $3,120/60 = $52Therefore FC = $40,000 (460 x $52) = $16,080BIncrease in variable costs from buying in (2,200 units x $40 ($140 $100) = $88,000Less the specific fixed costs saved if A is shut down = ($10,000)Decrease in profit = $78,00017 9AOnly the first statement is correct. Traditional absorption costing tends to over-allocate costs to high volume products, notunder-allocate them.1011BBy definition, a shadow price is the amount by which contribution will increase if an extra kg of material becomes available. 20 x$280 = $56.CNeither statement is correct. Responsibility is not assigned solely to senior managers as, for example, in a TQM environment qualityis everybodys responsibility. In addition, standard costing can be difficult to apply in dynamic situations.1213AThe second statement is talking about flow cost accounting, not input/output analysis.DTarget 1 is a financial target and so assesses economy factors. Target 2 is measuring the rate of work handled by staff which is anefficiency measure. Target 3 is assessing output, so is a measure of effectiveness.1415BIn comparison to participative budgeting, an advantage of non-participative budgeting is that it should be less time consuming, asless collaboration will be required in order to produce the budgets.CThe target costing process always begins with the target selling price being set. The required profit is then determined and deductedfrom the target selling price to estimate the target cost. The target cost is then compared to the estimated current cost and the costgap is then calculated.1617AThis is a description of an incremental budget.ANew profit figures before salary paid:Good manager: $180,000 x 13 = $234,000Average manager: $180,000 x 12 = $216,000Poor: $180,000 x 11 = $198,000EV of profits = (035 x $234,000) + (045 x $216,000) + (02 x $198,000) = $81,900 + $97,200 + $39,600 = $218,700Deduct salary cost and EV with manager = $178,700Therefore do not employ manager as profits will fall by $1,300.18BSet-up costs per production run = $140,000/28 = $5,000Cost per inspection = $80,000/8 = $10,000Other overhead costs per labour hour = $96,000/48,000 = $2Overheads costs of product D:$Set-up costs (15 x $5,000)Inspection costs (3 x $10,000)Other overheads (40,000 x $2)75,00030,00080,000185,000Overhead cost per unit = 185,000/4,000 = $462518 1920AThis is an example of feedforward control as the manager is using a forecast to assist in making a future decision.AIf demand is inelastic or the product life cycle is short, a price skimming approach would be more appropriate.19 Section B1 Chair Co(a)Learning curve formula = y = axbCumulative average time per unit for 8 units:Y = 12 x 8415= 50628948 hours.Therefore cumulative total time for 8 units = 40503158 hours.Cumulative average time per unit for 7 units:Y = 12 x 7415= 53513771 hours.Therefore cumulative total time for 7 units = 3745964 hours.Therefore incremental time for 8th unit = 40503158 hours 3745964 hours = 3043518 hours.Total labour cost for 8th unit =3043518 x $15 = $4565277Material and overheads cost per unit = $230Therefore total cost per unit = $27565277Therefore price per unit = $41347915(b)(i)Actual learning rateCumulative number ofseats produced1248Cumulative totalCumulative averagehours per unit125125 x r125 x r2hours125?343125 x r3Using algebra: 343 = 8 x (125 x r3)42875 = (125 x r3)0343 = r3r = 070The learning effect was 70% as compared to the forecast rate of 75%, meaning that the labour force learnt more quicklythan anticipated.(ii)Adjusted priceThe adjusted price charged will be lower than the original price calculated in part (a). This is because the incrementalcost of the 8th unit will be lower given the 70% learning rate, even though the first unit took 125 hours. We know thisbecause we are told that the cumulative time for 8 units was actually 343 hours. This is lower than the estimatedcumulative time in part (a) for 8 units of 40503158 hours and therefore, logically, the actual incremental time for the8th unit must be lower than the estimated 3043518 hours calculated in part (a). Consequently, total cost will be lowerand price will be lower, given that this is based on cost.2Glam CoBottleneck activity(a)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 equatesto 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 eachyear. Using this method, the capacity for each activity is as follows:CutTreatment16,0004,800AssistantsSenior stylistsJunior stylists48,0007,2009,6009,600The 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 salons throughput frombeing higher than it is. The total number of cuts or treatments which can be completed by the salons senior stylists is lessthan the number which can be completed by other staff members, considering the number of each type of staff available andthe time required by each type of staff for each client.20 (b)TPARCut$Treatment$Selling price60110MaterialsThroughputThroughput per bottleneck hourTotal salon costs per BN hour (w1)TPAR060594059404256148 (740+06)10268425616Working 1: Total salon costs(3 x $40,000) + (2 x $28,000) + (2 x $12,000) + $106,400 = $306,400Therefore cost for each bottleneck hour = $306,400/7,200 = $4256Note: Answers based on total salary costs were $80,000 were also equally acceptable since the wording of question wasopen to interpretation.3Hi Life CoDirect materials:FabricWoodNote12$200 m2 at $1750 per m220 m at $820 per m30 m at $850 per m3,5001642552Direct labour:SkilledSemi-skilledFactory overheadsAdministration overheads50 hours at $24 per hour300 hours at $14 per hour20 hours at $15 per hour34561,2004,200300Total cost9,61912Since the material is in regular use by HL Co, it is replacement cost which is the relevant cost for the contract.30 m will have to be ordered from the alternative supplier for immediate delivery but the remaining 20 m can be used frominventory and replaced by an order from the usual supplier at a cost of $820 per m.345There is no cost for the first 150 hours of labour because there is spare capacity. The remaining 50 hours will be paid at timeand a half, which is $16 x 15, i.e. $24 per hour.HL Co will choose to use the agency workers, who will cost $14 per hour, since this is cheaper than paying existingsemi-skilled workers at $18 per hour ($12 x 15) to work overtime.None of the general factory costs are incremental, so they have all been excluded. However, the supervisors overtime pay isincremental, so has been included. The supervisors normal salary, on the other hand, has been excluded because it is notincremental.6These are general overheads and are not incremental, so no value should be included for them.4Jamair(a)The four perspectivesFinancial perspective this perspective is concerned with how a company looks to its shareholders. How can it create valuefor them? Kaplan and Norton identified three core financial themes which will drive the business strategy: revenue growthand mix, cost reduction and asset utilisation.Customer perspective this considers how the organisation appears to customers. The organisation should ask itself: toachieve our vision, how should we appear to our customers? The customer perspective should identify the customer andmarket segments in which the business will compete. There is a strong link between the customer perspective and therevenue objectives in the financial perspective. If customer objectives are achieved, revenue objectives should be too.Internal perspective this requires the organisation to ask itself: what must we excel at to achieve our financial and customerobjectives? It must identify the internal business processes which are critical to the implementation of the organisationsstrategy. These will include the innovation process, the operations process and the post-sales process.Learning and growth perspective this requires the organisation to ask itself whether it can continue to improve and createvalue. The organisation must continue to invest in its infrastructure i.e. people, systems and organisational procedures inorder to improve the capabilities which will help the other three perspectives to be achieved.21 (b)Goals and measuresFinancial perspectiveGoalPerformance measureTo use fewer planes to transport customersLease costs of plane per customerExplanation operating efficiency will be driven by getting more customers on fewer planes. This goal and measure cover thecost side of this.GoalPerformance measureTo increase seat revenue per planeRevenue per available passenger mileExplanation this covers the first part of achieving operating efficiency by having fewer empty seats on planes.Customer perspectiveGoalPerformance measureTo ensure that flights are on timeOn time arrival ranking from the aviation authorityExplanation Jamair is currently number 7 in the rankings. If it becomes known as a particularly reliable airline, customersare more likely to use it, which will ultimately increase revenue.GoalPerformance measureTo reduce the number of flights cancelledThe number of flights cancelledExplanation again, if flights are seen to be cancelled frequently by Jamair, customers will not want to use it. It needs to beperceived as reliable by its customers.Internal perspectiveGoalPerformance measureTo improve turnaround time on the groundOn the ground timeExplanation less time spent on the ground means fewer planes are needed, which will reduce plane leasing costs. However,it is important not to compromise the quality of cleaning or make errors in refuelling as a consequence of reducing on theground time.GoalPerformance measureTo improve the cleanliness of Jamairs planesThe percentage of customers happy with the standard of the planes,as reported in the customer satisfaction surveys.Explanation at present, only 85% of customers are happy with the standard of cleanliness on Jamairs planes. This couldbe causing loss of revenue.GoalPerformance measureTo develop the online booking systemPercentage downtime.Explanation since the company relies entirely on the booking system for customer booking of flights and check-in, it iscritical that it can deal with the growing number of customers.Learning perspectiveGoalPerformance measureTo reduce the employee absentee rateThe number of days absent per employeeExplanation it is critical to Jamair that its workforce is reliable as, at worse, absent staff lead to cancelled flights.GoalPerformance measureTo increase ground crew training on cleaning andrefuelling proceduresNumber of days training per ground crew memberExplanation if ground crew are better trained, they can reduce the number of minutes that the plane stays on the ground,which will result in fewer planes being required and therefore lower costs. Also, if their cleaning is better, customer satisfactionand retention will increase.Note: Only one goal and measure were required for each perspective. In order to gain full marks, answers had to be specificto Jamair as stated in the requirements.22 5Safe Soap Co(a) Variance calculationsMix varianceTotal kg of materials per standard batch = 025 + 06 + 05 = 135 kgTherefore standard quantity to produce 136,000 batches = 136,000 x 135 kg = 183,600 kgActual total kg of materials used to produce 136,000 batches = 34,080 + 83,232 + 64,200 = 181,512 kgMaterialActual quantityStandard mixkgs181,512 x 025/135 = 33,61333181,512 x 06/135 =Actual quantityActual mixkgs34,08083,232Variance Standard costper kgVariancekgs(46667)(2,560)$104$(4,66670)(10,240)LyeCoconut oilShea butter80,672181,512 x 05/135 = 67,2266764,2003,0266739,08001181,512181,512(5,82669)AYield varianceMaterialStandard quantityStandard mixActual quantityStandard mixkgs33,6133380,672Variance Standard costper kgVariancekgs38667928$104$3,866703,712LyeCoconut oilShea butter025 x 136,000 =06 x 136,000 =05 x 136,000 =34,00081,60068,00067,226677733332,31999183,600181,5129,89869F(b)(i)A materials mix variance will occur when the actual mix of materials used in production is different from the standardmix. So, it is inputs which are being considered. Since the total mix variance is adverse for the Safe Soap Co, this meansthat the actual mix used in September and October was more expensive than the standard mix.A material yield variance arises because the output which was achieved is different from the output which would havebeen expected from the inputs. So, whereas the mix variance focuses on inputs, the yield variance focuses on outputs.In both September and October, the yield variance was favourable, meaning that the inputs produced a higher level ofoutput than one would have expected.(ii)Whilst the mix and yield variances provide Safe Soap Co with a certain level of information, they do not necessarilyexplain any quality issues which arise because of the change in mix. The consequences of the change may well havean impact on sales volumes. In Safe Soap Cos case, the sales volume variance is adverse, meaning that sales volumeshave fallen in October. It is not known whether they also fell in September but it would be usual for the effects on salesof the change in mix to be slightly delayed, in this case by one month, given that it i