# BEC Study Group 2020 - Page 8

Viewing 30 posts - 211 through 240 (of 247 total)
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Posts
• #2498187
Terre Paul
Participant

don't give up momonthemove, your family's faith is riding on yours. i dreaded losing credit, so i feel for you. but dont let the scope of the challenge scare you off. refocus on BEC. 1 CHALLENGE AT A TIME. YOU CAN DO IT!

Sent from my Sprint Samsung Galaxy S8.

AUD - 86
BEC - 81
FAR - 81
REG - 77
The race is not given to the swift or strong, but to him that perseveres to the end.
#2498439
MomOnTheMove
Participant

Thanks so much for the encouraging words. It helps more than you know.

Yes, let’s do this:-)

FAR 64, 78

REG 77

AUD 73, 80

BEC 67, 73, 78

#2505774
BEC Savvy
Participant

Hi everyone,

Can someone please help me with figuring out this part of the following TBS: How did we calculate the 25 DLH from the information given blow, resulting in \$818.75 cost per unit & \$2,046,875 per 2500 units ?

“If the company outsources the production of V-4 engines, Alcatara is exploring other options. One of the options the company is considering is to rent out the space to another entity for \$500,000 per month. The company is also considering using the space to produce an electric motorcycle motor. The incremental revenue and costs per unit of the new motor are as follows:

Incremental revenue \$6,000.00
Direct materials 2,732.00
Direct labor 675.00
Variable Overhead 32.75 per Direct Labor Hour
Traceable fixed costs 403.20 (assumes 2,500 units)
Common fixed costs 992,000.00 per month

Answer:
The potential opportunity costs would be the rental income of \$500,000 per month or the segment margin of proposed new products to be made, whichever is greater. The segment margin would be calculated as follows:

Opportunity Costs Per Unit 2500 units
Incremental Revenues \$6,000 \$15,000,000
Incremental Variable Costs
Direct Materials 2,732 6,830,000
Direct Labor 675 1,687,500
Variable Overhead (25 DLH × \$32.75) 818.75 2,046,875

Total Variable Costs 4,225.75 10,564,375
Contribution Margin 1,774.25 4,435,625
Traceable Fixed Costs 403.20 1,008,000
Segment Margin 1,371.05 3,427,625

The monthly segment margin exceeds the rental income and would be the opportunity cost.

Thanks!

#2602245
allusuc
Participant

Hardest test of them all for me but I luckily passed. I am now all done. 78!

Tread lightly. This section is not as easy as everyone says. True, the material doesn’t take forever to study such as far, but the topics are quite challenging. I used Rogers and scored 90% or higher in each section and felt like the actual exam had 15+ McQ in each testlet that was never tested/taught! I left thinking I failed for sure but somehow I passed. So lucky. Study hard everyone

#2693547
SIDIEULEVEUT
Participant

Hello, I'm taking BEC next month and I am freaking out. People are saying it's the “easiest” one but for some reason it has so far been the hardest for me. I think it's because I'm burned out but I get so frustrated at the MCQs. I have no patience at all. The lectures for Becker are ridiculously long so by the time I get to the questions I just want to go to bed. I might change my approach to do the lecture and skills practice first, take a break and do the MCQs. I have just finished B2 (financial management in Becker) and it was SOOO HARD. Can't wait to finish everything and start on the review. I'm thinking about flying through the material and do lots of review.

AUD - 89
BEC - 97
FAR - 85
REG - 91
Future CPA over here. HOW BAD DO YOU WANT IT??????
#2701140
f
Participant

Hi all,

Recently took BEC and failed with a 70. Started restudying & plan on sitting for it again in a month. I'm restudying based off of my performance report. I also paid for FAR and have to sit for that one by 1/27/2020.

A-

B- 82

F-

R-

#2701647
say
Participant

I want to make a suggestion to you after taking FAR and BEC. I passed FAR, took BEC on 9/10. I used Wiley. If you're unsure of a topic and your study guide isn't cutting it try going on youtube and using professor farhat lectures. This isn't a promo lol. He helped me understand derivatives, bonds, pensions, leases, variance analysis, process costing. His videos drove the point home for me. I recommend that now that you know where your short comings were on the exam you go out and nail down those areas. Good luck.

#2703867
f
Participant

Hi Thanks @Say. I find myself googling a lot of the topics I seem to have trouble with. Especially the hard to understand explanations to questions from Becker MCQ. I usually find a better explanation on here, so figured I would make an account and hopefully answer someone else's questions too! I've watched a couple of professor farhat videos and also edspira on youtube. Investopedia usually has great explanations too.

A-

B- 82

F-

R-

#2706201
SIDIEULEVEUT
Participant

How is BEC studying going? Im using Becker and I'm done with BEC 1 , 2 and 3. This weekend I'm reviewing everything I learned before I tackle the B4 on Monday. So far, BEC 2 (Financial Management) is my hardest especially the concepts around supply chain and inventory management. Planning on taking BEC on October 19th!

AUD - 89
BEC - 97
FAR - 85
REG - 91
Future CPA over here. HOW BAD DO YOU WANT IT??????
#2706372
MomOnTheMove
Participant

I can officially say I am finally done. Thanks to Jeff and the folks on this forum for all the advice. It’s so welcoming and I am forever grateful. The NINJA MCQs I feel really helped me pass the AUD and BEC exams. @F Investopia was extremely helpful to me too (loved their short videos). And Accounting Tool website was a great help as well.

FAR 64, 78

REG 77

AUD 73, 80

BEC 67, 73, 78

#2706771
inviteyou
Participant

I am working on a dividend payout ratio. They took the difference of the R.E. and subtracted that from Net Income to get the cash dividend paid out. If the Retained Earnings on Jan. 1 was \$810.00 and they paid out \$150.00 in dividends, wouldn't the ending R.E. have gone down? My thought from Jan. 1 to Dec. they would've paid out. Can anyone provide some insight and let me know what I'm missing.

They explained it as:
1080-810=270; 420 – 270 = 150; 150/420 = 0.36.

Balance Sheet Jan. 1 Dec. 31
Retained earnings 810 1,080

Net income \$ 420
Answer Solution: Dividend payout ratio = common dividends/net income = 150/420 = 0.36. Retained earnings increased 270 (1,080 − 810). 270 = 420 net income – dividends declared. Therefore dividends declared are 150.

practice, Practice, PRACTICE!
#2706774
inviteyou
Participant

I am working on a dividend payout ratio. They took the difference of the R.E. and subtracted that from Net Income to get the cash dividend paid out. If the Retained Earnings on Jan. 1 was \$810.00 and they paid out \$150.00 in dividends, wouldn't the ending R.E. have gone down? My thought from Jan. 1 to Dec. they would've paid out. Can anyone provide some insight and let me know what I'm missing.

They explained it as:
1080-810=270; 420 – 270 = 150; 150/420 = 0.36.

Balance Sheet Jan. 1 Dec. 31
Retained earnings 810 1,080

Net income \$ 420
Answer Solution: Dividend payout ratio = common dividends/net income = 150/420 = 0.36. Retained earnings increased 270 (1,080 − 810). 270 = 420 net income – dividends declared. Therefore dividends declared are 150.

practice, Practice, PRACTICE!
#2706999
inviteyou
Participant

Ok, I figured it out. Beg. R.E. + Net Income – Dividends = Ending R.E. So to plug in the above numbers: 810 + 420 – X = 1080. X = 150. 150/420 = 0.36. Much easier way to get to this answer rather than what the solution provided, in my opinion.

practice, Practice, PRACTICE!
#2759871
se7en.14
Participant

for those planning to test 2020, do you know if there are any changes being made to BEC section?

.
#2762436
tcharie
Participant

How did you do? I was reading your posts and noticed you were struggling on the exact same section I am struggling on right now. I want to be a good Becker student and watch the lectures and do the skill practice as suggested but I feel like as soon as I get through those and start the multiple choice for the section, I am reading another language.

Did anyone find a better system that worked for them? Im considering skipping the traditional route and just going hard on the mcqs and sims. I have a four week time-crunch.

#2790219

How was everyone's study weekend?

Jeff Elliott, CPA (KS)
NINJA CPA Review
#2796984
KFu
Participant

Hey everyone,

I am studying now for BEC now. I passed the BEC part of the exam about 5 years ago, but needed to step away from the CPA because of illness. I just took FAR this week and I am planning on sitting for BEC in late January/early February.

With all that said, when I passed BEC, the written communications weren't a thing.

Anybody have/want to give any insight on what to expect?

#2800608
tcharie
Participant

@KFu, I would say depending on your review prep materials, spend time on the review for those sections. I use Becker. It's obviously not going to be identical questions but I feel like they provide a great foundation for the type of problems you will run across. I took the BEC exam today and I honestly felt like the written communications were the easiest parts of the exam.

With that said…I believe people are underestimating the power of IT in the BEC lol.

#2806707
se7en.14
Participant

Do both payback and discounted payback not take into account depreciation and salvage value?
Thanks

.
#2856771
parveen.asia
Participant

i am having trouble with grasping economic section of the BEC. How is everyone else studying for this section?

#2875062
LVNB15
Participant

Is anyone having trouble with the variance analysis questions in Ninja (and 1 or 2 mc in Becker) that involve a line diagram? The questions ask you to determine whether or not a point is favorable or unfavorable. For anyone who has taken BEC before, are these types of questions common?

Ninja & Becker

FAR: 82

AUD: 84

BEC: 90

REG: ---

#2879616
capitanestevan
Participant

I feel like the MCQ on Roger isn't as random as I'd like. Like once you've gone through everything you keep getting many of the same questions on each quiz. It's a little unnerving since it feels like there may be some areas you're not hitting…

AUD - 84
BEC - 80
FAR - 88
REG - 84
Whose statements are these? Management's!
#2933184
asdf
Participant

hey guys, need some help to understanding this question.
basically, i don't understand why Variable OH uses maximum capacity and Fixed OH is normal capacity.
i've read the explanation but i don't get it. please help!!
—————————————————————–
Dean Company is preparing a flexible budget for 2012 and the following maximum capacity estimates for department M are available:

At maximum capacity
Direct manufacturing labor hours 60,000
Variable factory overhead \$150,000
Fixed factory overhead \$240,000

Assume that Dean’s normal capacity is 80% of maximum capacity. What would be the total factory overhead rate, based on direct manufacturing labor hours, in a flexible budget at normal capacity?
——————————————————————————–
answer is \$7.50
This answer is correct. The variable portion of the factory overhead rate can be computed by dividing variable factory overhead (at maximum capacity) by direct manufacturing labor hours (at maximum capacity).

\$150,000/60,000 = \$2.50

Note that the variable overhead rate is constant over the relevant range of activity. Since total fixed overhead is constant over the relevant range, the budgeted fixed overhead is divided by direct manufacturing labor hours at 80% of maximum capacity, or 48,000 hours (60,000 × 80%).

\$240,000/48,000 = \$5.00

The total factory overhead rate is \$2.50 plus \$5.00, or \$7.50 per direct manufacturing labor hour.

FAR - Passed

REG - Passed

AUD - Passed

BEC - Scheduled for Feb 2020 - PASSSSED!!!!!

#2937240
TNTTN
Participant

Hi guys, please help. When can we tell if the question asks for variable cost only, fixed cost only or total overhead cost? Why don't we take into account the variable cost for the question below?

Black and Company manufacture concrete lawn products. Black has invested a substantial amount in concrete mixing, casting, and curing equipment and has allocated fixed costs of \$2.00 per unit produced based on normal capacity. During a period of slack demand, a salesman has proposed accepting an order for ten thousand ornamental concrete statues to be delivered to the customer at a price of \$2.79 each. The cost of each unit is projected to be:

Materials \$0.62

Labor \$0.47

Shipping \$0.07

Overhead \$2.00

If Black’s normal capacity was 20,000 units per month, and this 10,000 unit contract was the only one worked on during the month, which of the following adjustments to the factory overhead control account should be made at the end of the month?

A. A debit of \$3,700

B. A credit of \$3,700

C. A debit of \$20,000

D. A credit of \$20,000
Answer
Choice “D” is correct. Black's actual overhead costs are 20,000 times \$2.00, or \$40,000. The
reduced quantity of products produced would have resulted in only 10,000 times \$2.00, or
\$20,000, being credited to this account for application to the job. A credit adjustment of
\$20,000 would be required to close the unapplied amounts at the end of the month.

AUD - 79
BEC - 88
FAR - 85
REG - 81
^______^
#2951900

I decided to resurrect the study groups. If you have a study strategy question for me, post it here. 🙂

Jeff

Jeff Elliott, CPA (KS)
NINJA CPA Review
#2951975
asdf
Participant

Thanks Jeff!!
and a bump for my question. please help!
——————————————–
hey guys, need some help to understanding this question.
basically, i don't understand why Variable OH uses maximum capacity and Fixed OH is normal capacity.
i've read the explanation but i don't get it. please help!!
—————————————————————–
Dean Company is preparing a flexible budget for 2012 and the following maximum capacity estimates for department M are available:

At maximum capacity
Direct manufacturing labor hours 60,000
Variable factory overhead \$150,000
Fixed factory overhead \$240,000

Assume that Dean’s normal capacity is 80% of maximum capacity. What would be the total factory overhead rate, based on direct manufacturing labor hours, in a flexible budget at normal capacity?
——————————————————————————–
answer is \$7.50
This answer is correct. The variable portion of the factory overhead rate can be computed by dividing variable factory overhead (at maximum capacity) by direct manufacturing labor hours (at maximum capacity).

\$150,000/60,000 = \$2.50

Note that the variable overhead rate is constant over the relevant range of activity. Since total fixed overhead is constant over the relevant range, the budgeted fixed overhead is divided by direct manufacturing labor hours at 80% of maximum capacity, or 48,000 hours (60,000 × 80%).

\$240,000/48,000 = \$5.00

The total factory overhead rate is \$2.50 plus \$5.00, or \$7.50 per direct manufacturing labor hour.

FAR - Passed

REG - Passed

AUD - Passed

BEC - Scheduled for Feb 2020 - PASSSSED!!!!!

#2952989

hey guys, need some help to understanding this question.
basically, i don't understand why Variable OH uses maximum capacity and Fixed OH is normal capacity.
i've read the explanation but i don't get it. please help!!

Fixed Overhead always uses Normal Capacity.
Fixed Overhead Application Rate = Budgeted Fixed Overhead/Normal Capacity.

Variable Overhead is constant per unit and it will use the budgeted capacity. In the particular question, Variable Overhead uses maximum capacity and is calculated at maximum capacity.

Jeff Elliott, CPA (KS)
NINJA CPA Review
#2953451
asdf
Participant

oh…i see.. thanks for the clarification!!! @Jeff

FAR - Passed

REG - Passed

AUD - Passed

BEC - Scheduled for Feb 2020 - PASSSSED!!!!!

#2960075
#2960084
asdf
Participant

\$2,250 Unfavorable!!!!!

FAR - Passed

REG - Passed

AUD - Passed

BEC - Scheduled for Feb 2020 - PASSSSED!!!!!

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