Page 1 of 1 Gleim CMA Review Updates to Part 1 16th Edition, 1st Printing February 2013 NOTE: Text that should be deleted from the outline is displayed with a line through the text. New text is shown with a blue background. Study Unit 1 – Ethics for Management Accountants and Cost Management Concepts Page 32, Subunit 1.6, 3.c.: This edit clarifies allocation of manufacturing costs using activity-based costing. c. Activity-based costing (ABC) attaches costs to activities rather than to physical goods first assigns resource costs to activities. These activity costs are then assigned to physical goods. 1) ABC is a response to the distortions of product cost information brought about by peanut-butter costing, which is the inaccurate averaging or spreading of costs like peanut butter over products or service units that use different amounts of resources. a) A major cause of the problems associated with peanut-butter costing is the significant increase in indirect costs brought about by the increasing use of technology. Study Unit 7 – Cost and Variance Measures Page 267, Subunit 7.6, 2.3): This edit removes the word “efficiency” from the total. Variable Overhead Variances Static budget variable overhead Flexible budget variable overhead Actual variable overhead Units 18,000 16,500 16,500 Machine Hours 1.2 1.2 1.3 Variable overhead spending variance AQ × (AP − SP)* Variable overhead efficiency variance SP × (AQ − SQ)** Total variable overhead efficiency variances Actual Quantity 21,600 19,800 21,450 Rate $ 8.00 $ 8.00 $10.00 Total $172,800 $158,400 $214,500 $42,900 U 13,200 U $56,100 U *21,450 × ($10 − $8) **$8 × (21,450 − 19,800) Page 273, Subunit 7.8: This update corrects the multiple-choice question numbers for Study Unit 7.8. Stop and review! You have completed the outline for this subunit. Study multiple-choice questions 84 through 99 beginning 37 and 38 on page 288. Copyright © 2013 Gleim Publications, Inc. and/or Gleim Internet, Inc. All rights reserved. Duplication prohibited. www.gleim.com