F5 P&R Kit Errata

Eighth edition
Q

Issue

Should be

1.2

None of the options are correct

All options will have an effect on the throughput

accounting ratio. Therefore option C should be
deleted and replaced by current option D. The new
option D should read "all of the above" and is the
correct answer. The solution should be amended
accordingly, and the final sentence deleted.

1.8

Typo in solution

Final line of solution should read "end of the

projected product's life."

3.10

Incorrect solution. Correct answer is

D 500 units. Factory cost per unit
are not relevant in the calculation
and TA ratio should not be
calculated.

D. 500 units.
A

Maximum sales
demand

1,000 500 2,000 1,000

Selling price per

unit

$15

$21 $18

$25

Material cost per

unit

$6

$10 $9

$16

Throughput per
unit

$9

$11 $9

$9

Machine hours
per unit

0.1

0.2

0.3

0.2

Throughput per
machine hour

$90

$55 $30

$45

Priority for
manufacture

1st

2nd 4th

3rd

In the 750 hours available, the company should

make 1,000 units of A (100 hours), then 500 units
of C (100 hours), then 1,000 units of D (200
hours) leaving 350 hours available to make 1,166
units of Product C.

14

The two requirements in the

question are incorrectly labelled (d)
and (e)

(a) and (b)

20.9

Solution is incorrect. Option D

should read $13,150, which is the
correct answer.

20.9

(Syllabus area B1(b))

$

Material W

500 kg $8

4,000

Material X

(300 kg
$3) + (200kg
$7)

2,300

Material Y

500 kg
$11

5,500

Material Z

Higher of
(100 $12)
and (150
$9)

1,350

13,150
40.3

Typo in question

Option B should be $3,420 (F)

42.6

Typo in question

Question should read "Which one of the following

is the least likely reason why standard costs might
not easily be applied to road haulage and
distributions services?"

44.4

The correct answer is $40, which

does not appear in the options. The
solution is correct.

Option C should read $40(F)

69.4

The answer should be (a) and not

(b).

The max transfer price should be the lower of net

marginal revenue ($8) and the external market
price, which in this case is $16

69.10

Options A & B are identical

Solution is unaffected

71.8

Dual pricing is not on the F5

syllabus

Statement 2 should be ignored. Statement 1 is

correct.

75/76

Cannot do question 75 without

question 76.

This is not indicative of exam questions where

each of the long questions in section b will be self
contained.

76

Incorrect comment in second part

of (a).

It is NOT in the manager or the Company's best

interests to accept the project.

ME1 A17

The correct answer is A, solution

says C.

The answer should say that C is the correct

answer. The remainder of the solution is correct.

ME2Q4

There is a sentence missing which

is required in order to answer Part
(a) (ii)

The following sentence should be added to the

scenario: Actual output was 7,800 litres of paint

ME3Q3

The question has an incorrect

number under the "Total number of
activities per year" in respect of
Planning documents.

The question should say that total number of

activities per year were 250 for planning
documents. It will then be consistent with the
solution.