CMA Study Group

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  • 1.  CMA PART 1 SECTION D

    Posted 01-21-2022 06:56 AM

    Need help in understanding where did he get the 42000 in TC from



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    Tayba Al-Mehdar
    Analyst
    Khobar
    Saudi Arabia
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  • 2.  RE: CMA PART 1 SECTION D

    Posted 01-21-2022 02:10 PM
    It is the Total Cost of Week 1 (Direct labor + other manufacturing cost) = $17,000 + $ 25,000 = $ 42,000

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    Karthikeyan Barathanathan
    Director/Manager
    Pasadena CA
    United States
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  • 3.  RE: CMA PART 1 SECTION D

    Posted 01-22-2022 03:16 AM
    Hi iam Mohamed Ameen Nk
    Appearing for P1 and P2 in May
    Please add me to study group
    +919539549503





  • 4.  RE: CMA PART 1 SECTION D

    Posted 01-22-2022 04:36 AM
    It is of Week 1 Direct Labour cost  $ 17000 + other manufacturing cost $ 25,000
    = $ 42,000 Total cost of week 1





  • 5.  RE: CMA PART 1 SECTION D

    Posted 01-22-2022 05:24 AM
    Hi! Use the equation Y=a+bx, and by using high-low method you will get the value of VC per unit (5.50)
    High cost = 47,500 @ 6,000units
    Low cost  = 42,000 @ 5,000units
    Then, you can used either cost value to substitute in the equation. For easier computation, we usually used the lower cost to solve for the FC giving you the equation (42,000 = a + 5.50*5,000).

    Hope this helps.