CIMAPRO19-P01-1 Exam - Topic 8 Question 103 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam

Question #: 103
Topic #: 8

TP makes wedding cakes that are sold to specialist retail outlets which decorate the cakes according to the customers' specific requirements. The standard cost per unit of its most popular cake is as follows:

The general market prices at the time of purchase for Ingredient A and Ingredient B were $23 per kg and $20 per kg respectively. TP operates a JIT purchasing system for ingredients and a JIT production system; therefore, there was no inventory during the period.

What was the material yieldvariance?

AThe material yield variance was $98500 A

BThe material yield variance was $175500 A

CThe material yield variance was $155000 A

DThe material yield variance was $175 000 A

EThe material yield variance was $155500 A

Show Suggested Answer

Suggested Answer: D

by Louvenia at Nov 16, 2024, 10:53 PM

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Valentine

3 months ago

$155,000 A seems more realistic to me.

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Sheldon

3 months ago

I agree with Ardella, $175,500 A makes sense!

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Julio

3 months ago

Wait, how can it be that high? Sounds off.

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Ardella

4 months ago

I think the yield variance is definitely $175,500 A.

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Bobbie

4 months ago

The standard cost for Ingredient A is $23/kg.

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India

4 months ago

I feel like I should have a better grasp on the JIT system's impact on variance calculations, but I’m a bit lost on the specifics right now.

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Kris

4 months ago

This question reminds me of a similar practice one we did about variances. I think I might lean towards option C, but I’m not completely confident.

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Xuan

4 months ago

I think the key is to compare the actual yield to the expected yield based on standard costs. I hope I can remember how to do that under pressure.

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Orville

5 months ago

I remember we practiced calculating material yield variance, but I’m not sure if I got the formula right for this one.

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Nobuko

5 months ago

Whew, this is a tricky one. I'm not totally confident in my ability to calculate material yield variance, but I'll give it my best shot. I'll need to make sure I understand the difference between actual and standard usage and costs, and then carefully work through the numbers. Hopefully I can get the right approach.

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Pamella

5 months ago

Okay, I think I've got this. I'll need to find the actual material usage based on the production, then calculate the actual material cost using the market prices. Then I'll compare that to the standard material cost to get the variance. As long as I'm careful with the numbers, I should be able to get the right answer.

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Jaime

5 months ago

This seems straightforward enough. I just need to calculate the actual material cost and compare it to the standard material cost to find the variance. The key will be making sure I use the correct quantities and prices in my calculations.

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Joseph

5 months ago

Hmm, I'm a bit unsure about how to approach this. The information about the standard cost per unit and market prices for the ingredients is helpful, but I'm not sure how to use that to calculate the material yield variance. I may need to review my notes on this topic.

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Gary

5 months ago

Okay, this looks like a standard material yield variance calculation question. I'll need to find the actual material usage and compare it to the standard material usage to determine the variance.

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Bea

1 year ago

I bet the person who wrote this question has a real knead for detail.

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Julian

1 year ago

Well, at least it's not a cake walk. Get it? Cake walk? Oh, never mind.

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Whitley

1 year ago

Wait, is this a trick question? All the answers look pretty similar to me.

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Bernardo

1 year ago

D) The material yield variance was $175 000 A

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Lavonne

1 year ago

C) The material yield variance was $155000 A

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Joseph

1 year ago

B) The material yield variance was $175500 A

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Tanja

1 year ago

A) The material yield variance was $98500 A

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Ena

1 year ago

Ah, a classic material yield variance problem. I'm feeling confident about this one.

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Juan

1 year ago

I agree, that seems like the correct answer.

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Franklyn

1 year ago

I think the material yield variance was $175500 A

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Sheridan

1 year ago

I'm not sure, but I think the material yield variance was $175 000 A based on the market prices of the ingredients.

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Hollis

1 year ago

Hmm, I'm not entirely sure about this one. The information provided seems a bit tricky to parse.

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Jesus

1 year ago

Actually, the correct answer is $155000 A

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Shannon

1 year ago

No, I believe the material yield variance was $175500 A

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Sherron

1 year ago

I agree, the material yield variance was $155000 A

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Lili

1 year ago

I think the material yield variance was $155000 A

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Chaya

1 year ago

I believe it was $155000 A because the actual cost of ingredients was lower than the standard cost.

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Frankie

1 year ago

This question looks pretty straightforward. I think the answer is B.

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Meghann

1 year ago

Great explanation, thanks for breaking it down!

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Felix

1 year ago

Exactly, in this case it would be ($23 + $20) * 8000 - $2,000,000 = $175,500

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Francene

1 year ago

That makes sense, the material yield variance is calculated by taking the standard cost of material used minus the actual cost of material used multiplied by the actual quantity used.

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Maybelle

1 year ago

I agree, the answer is B) The material yield variance was $175500 A

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Pearlie

1 year ago

I think the material yield variance was $175500 A.

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