Is this profit at the end of the cost, instead of the profit you mentioned as other variable cost.

answered on 04-Sep-24 12:06

Is that technical error or my interpretation is wrong

latest answer

Kindly elaborate on your query. Unable to understand what your query is

Caintersm2024

CA Inter

★ 3K+

1

122

Overhead Costing

answered on 01-Sep-24 00:08

Depreciation point (for calculation) When this exp is treated as fixed and when it is considered as variable? Here it is written efflux of time it is considered fixed..what is this? Can anyone explain please It is here

latest answer

Can you send the image of question which you are asking?

Shruti Ganpati

CA Inter

★ 255

5

96

Cost Sheet - Past paper problems

answered on 27-Aug-24 11:33

Earnings per Man-shift: Is the formula in the screenshot correct? because they ask Earnings per man-shift, so I thought dividing the Profit by man-shift would be correct. Please clarify.

latest answer

Okay Got it. Thanks 👍

Nikil Karol

CA Inter

★ 115

6

143

Absorbing base

answered on 19-Aug-24 10:30

Sir, Why absorption rate is calculated based on working hours. And what is the difference between machine hour, horse power and working hours.. how these things are applicable, like how can I identify and apply it on respective apportionment and allocation.

latest answer

Working hours is the number of hours worked. In this particular question they have mentioned only working hours. In few questions they give labour hours worked and machine hours worked. If the dept/ production process is labour intensive then we use labour hrs as the basis for calculating oh recovery rate. On the other hand, if the dept /process is machine intensive we use machine hrs as the base. The HP referes to the horse power of the machine and this determines the power consumption. Usually used as a base for distribution of power cost.

HariPriya C

CA Final

★ 3K+

1

123

RTP COMPILER - CHAP3 - Q1

answered on 19-Aug-24 09:35

In this question attached below, I am failing to understand the logic of taking proportionate OH while the robot is not used(refer WN VI). When the robot is not used and only the machine is used the entire OH cost of operating the machine(i.e.42000) shall be absorbed by the 1500 hours when the machine is used right? So while computing the hour rate {refer solution point (i)(B)} shouldn't the numerator be 42000. If not even after the machine is used for full capacity of 1500hr the OH absorbed would be (1500*12=18000) whereas the cost incurred would be 42000. Kindly explain. Thanks

latest answer

1. Total oh for the factory is calculated. 2. Total hrs worked with or without robot is calculated 3. The Oh at step one is proportionately divided between working with use of Robot and working without use of Robot. 4a. The oh without use of Robot is divided by no of hrs without robot to arrive at machine rate. 4b. The oh with use of Robot is further increased by cost of the robot and then divided by the number of hrs with use of Robot to arrive at per hr rate. The solution is also very much in line with the above. What is your query here ? If you are trying to calculate the total hrs assuming with robot and without robot individually it would be a wrong assumption

Aswin Chandar

CA Inter

★ 40K+

2

190

Standard costing

answered on 19-Aug-24 09:38

Difference between standards and budgets

latest answer

Budget is for the budgeted qty while standard is for the actual qty produced. On a per unit basis budget= standard. When we look at a overall period say a month in which the budgeted units are 1,000 and actual output is 900 then P.u. values * 1000 units will give you budget And P.u. values * 900 units will give you standard for actuals And Actuals will be given anyways in the question

Lakshminarayana Atluri

CA Final

★ 0

1

42

Costing Compiler Q22 - MAY 2021 RTP

answered on 19-Aug-24 09:39

In the given question, while it is logical to take annual demand for raw material after deducting the stock of raw material as we are calculating order quantity. However while calculating Avg consumption should we not take the whole requirement of raw material for the production including those in opening stock? For Calculating max or min consumption, does the source of raw material (opening stock or purchased during the year) matter? Kindly explain. thanks

latest answer

While the answer is little illogical you need to be aware that at some place a different working was done by the icai

Aswin Chandar

CA Inter

★ 40K+

3

149

Process costing PQ. No: 4

answered on 12-Aug-24 11:41

Why in abnormal loss degree of completion for Labour & OH taken 80% please anyone clarify this?

latest answer

Percentages to be considered are clearly given in the question

Nagaraju Konerolu

CA Inter

★ 3K+

4

163

Material cost

answered on 09-Aug-24 09:30

In the may 2019 RTP , given pdf , material cost question number 1 , in the solution while computation of reorder level , value of annual consumption of raw material is taken as 18200 kg i.e before subtracting opening stock . While ,in july 2021 RTP given pdf , material cost question number 1 , in the solution while computation of reorder level , value of annual consumption of raw material is taken as 70800 kg i.e. after subtracting opening stock. So , which is the correct method with reasons and what should be followed in exam ?

latest answer

If the question doesn't specify anything, use the total consumption before subtracting the opening stock, like in the May 2019 RTP.If the question specifies to exclude opening stock, then follow the July 2021 RTP method.Always follow the question's instructions, but if unclear, it's safer to use the total consumption before subtracting the opening stock.

Anirved Rahatgaonkar

CA Inter

★ 0

1

139

closing raw material

answered on 01-Aug-24 10:00

In 1FIN material closing raw material is given as 80,000 and in video it is mentioned as 50,000 which amount given is correct?

latest answer

Please follow as per the video. We will update in the material

20UCOM082 Kanika.S

CA Inter

★ 4K+

1

60