Economics, Accounting & Business: Post your doubts here!

[parthrocks]

http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s06_qp_1.pdf
Q 30

C

 

[Vinita Manek]

http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s06_qp_1.pdf
Q 30

ans is C...u gt to apportion rent based on floor space area and apportion heatin based on power used....add bth n u l gt 66000....

 

[SUMMERLOV35]

i have a question... when you make a bonus share issue, how do you which reserve you can use
as to leaving the reserves in the most flexible form??

 

[Somia uddin]

answer is c

but how

 

[Vinita Manek]

i have a question... when you make a bonus share issue, how do you which reserve you can use
as to leaving the reserves in the most flexible form??

dat means u use d share premium first...if ny amount still needs to be paid u use d general reserve and lastly in case of need u use d profit n loss reserve.....

 

[wajiman]

look at my post at http://www.xtremepapers.com/communi...st-your-doubts-here.10459/page-69#post-262454

in detail:

for calculating power expense, we will do the following = 7,500 kwh/ 25,000 kwh * $20,000 = $6,000

for rent = 30,000/50,000 * $100,000 = $60,000

now add $60,000 and $6,000 and the answer is $66,000

 

[wajiman]

i have a question... when you make a bonus share issue, how do you which reserve you can use
as to leaving the reserves in the most flexible form??

as Vinita Manek said, its done like this because the Revenue reserves which are general reserve and profit and loss account( any reserve that has cash at the back end) usually have cash and using this reserve can or might create liquidity problems due to which capital reserves are used which are share premium, revaluation reserve. etc.... the most flexible form represents the fact that the cash in this reserve can be used for a more wider purposes which shows its flexibility.

 

[Vinita Manek]

any1 gt idiea abt data response eco ppr 2?????

 

[wajiman]

here is a mcq, although i know its solution but it might help those on preparing for this kind of mcqs.

 

[shanky631]

here is a mcq, although i know its solution but it might help those on preparing for this kind of mcqs.

is the answer C right??

 

[wajiman]

xactly

 

[wajiman]

here is another:

 

[shanky631]

xactly

hey bro, it is a good initiative. it will help others to understand the concept.

 

[parthrocks]

here is a mcq, although i know its solution but it might help those on preparing for this kind of mcqs.

Yup the answer should be C as 50000/10000 whihc will mean oar is equal to 5 and then into number of actual activity will equal to say x...and then as under absorption so 55000/5 which is 11000....

 

[shanky631]

So for the first one, we start by dividing the budgeted production overhead by the budgeted units to give OAR as 5. Then we will deduct the under absorption amount from actual overhead to give 55000. then 55000 will be divided by 5 to give 11000 as units. Hope my explanation was clear enough. Thank u

have a nice day

 

[parthrocks]

here is another:

Is the answer A....TOO TOUGH MANNNN

 

[wajiman]

yes the answer's A

 

[parthrocks]

Is the answer A....TOO TOUGH MANNNN

See for this one you know that budgeted overhaeds equals 11500000 and then as it is patient/day basis thus 25000 into 10 will give u the answer in days 250000 and so 11500000/250000 which is 46 dollar..per patient day...and i think we dnt take the direct cost into consideration/////....is it so???

 

[wajiman]

See for this one you know that budgeted overhaeds equals 11500000 and then as it is patient/day basis thus 25000 into 10 will give u the answer in days 250000 and so 11500000/250000 which is 46 dollar..per patient day...and i think we dnt take the direct cost into consideration/////....is it so???

yes in OAR, its overhead absorption rate, meaning fixed expenses and overheads no direct costs as they are not overheads but variable costs

 

[Mohammad Taymur]

plz help in question no 30