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Well how did you think the PCR exam went?
Easier than June 2007 or harder?
How long did it take you? 2 hrs for me. :001_tongue:
Did the question on material purchase say 'additional' material purchased? :confused1:
Did you think Part one or Part two of the paper was harder? :thumbdown:
How did you prepare yourself before sitting the exam? I slept bad, ate blueberries for their brainpower (Don't think they have started working yet), orange juice just to combat the cold (why are the facilities always cold) and now crave something loaded with calories. :thumbup:
Do you think you can survive the long wait for the results?
I thought it was harder than the PEV paper on Monday (which I thought was alright). Some of the questions in PCR just left me starring at them thinking "Does it mean this or does it mean that" so I've probably answered something that wasn't asked a few times :(
We're not supposed to talk about specific questions until 3pm btw.
Cant talk specifics yet but I thought it was ok - however something you have said has made me think I have made a huge error!
Will come back on at 3pm if anyone wants to discuss it
I thought it was harder than the PEV paper on Monday (which I thought was alright). Some of the questions in PCR just left me starring at them thinking "Does it mean this or does it mean that" so I've probably answered something that wasn't asked a few times :(
We're not supposed to talk about specific questions until 3pm btw.
You think exactly the same as me by the sound of things, i found the 1 st one harder and didn't know if i was answering the right question half the time!
I felt the same as if might not be answering the right question.
Not sure if it was just me but got a bit confused by wording in a couple of places.
Like pev, this felt different from past papers but maybe thats just because it was for real this time. Either way i don't feel too confident about the results
I'm fairly confident about the 1st one but only 50/50 for the second exam, but i've done terribly in AAT exams before and been sure i've failed and then ended up passing! So you never know.
Nearly 3pm
What did everyone write for the 3 changes to help reach the required level of production?
I writ: keep more stock of raw materials, buy in finsihed goods and only produce 250ml cartons and not the 500ml
Any one put anything similar?
Well how did you think the PCR exam went?
Easier than June 2007 or harder?
How long did it take you? 2 hrs for me. :001_tongue:
Did the question on material purchase say 'additional' material purchased? :confused1:
Did you think Part one or Part two of the paper was harder? :thumbdown:
How did you prepare yourself before sitting the exam? I slept bad, ate blueberries for their brainpower (Don't think they have started working yet), orange juice just to combat the cold (why are the facilities always cold) and now crave something loaded with calories. :thumbup:
Do you think you can survive the long wait for the results?
I thought it was easier than June 2007. I found the second section pretty straight forward with the calculations but got a bit confused on the memo and think I babbled on about irrelevant things.
Section one I thought was not too bad but now I am worrying about the material purchase - I thought it said that it was the maximum available as he had already put his order in, but do you mean you thought it said it was the maximum additional he could get?
I have messed that up then! I read it as how to produce more in that period - so keeping extra stock wouldnt help so I said the opposite - to reduce the finished goods stock. I also said to take on extra staff
What did everyone write for the 3 changes to help reach the required level of production?
I writ: keep more stock of raw materials, buy in finsihed goods and only produce 250ml cartons and not the 500ml
Any one put anything similar?
I put high temporary staff, increase the overtime limit (both of these answers came from a similar question in a practice paper I did yesterday) as there was a labour hour shortage and try and find another supplier who could meet the requirement the company needed.
The last one could be completely wrong depending on whether I understood the information given correctly. It said he had already placed orders and couldn't acquire more than 1,500 for Jan production .... did that mean he had placed an order for the material purchases budget calculated and could order a further 1,500 m2 (more than enough for the 8% increase) or did that mean that only 1,500 m2 could be ordered for the whole month (mean you couldn't meet the original production budget .. on the figure I calculated anyway). :001_unsure:
Oliver1987
06-12-07, 16:10
I put high temporary staff, increase the overtime limit (both of these answers came from a similar question in a practice paper I did yesterday) as there was a labour hour shortage and try and find another supplier who could meet the requirement the company needed.
The last one could be completely wrong depending on whether I understood the information given correctly. It said he had already placed orders and couldn't acquire more than 1,500 for Jan production .... did that mean he had placed an order for the material purchases budget calculated and could order a further 1,500 m2 (more than enough for the 8% increase) or did that mean that only 1,500 m2 could be ordered for the whole month (mean you couldn't meet the original production budget .. on the figure I calculated anyway). :001_unsure:
I am not sure how i've done now. I understood it as he had ordered 1,500 and couldn't get anymore as well. I'm more confused now than when i did it this morning.
I was convinced that it said the total amount he could buy, but thinking about past papers theres usually only one limiting factor, so maybe it was just labour hours, argh!
Did anyone out there answer it as if the 1500 was additional?
Paul Bowen
06-12-07, 16:13
@mowzer and cortez: (and ayone else to whom this applies) I'm interested in your comments re wording. Once the papers are online next week please have a look and C&P specific examples into an exam feedback email? The email address is at the end of the exam feedback questionnaires (http://www.aat.org.uk/surveys/examsstudentfeedback/).
I was convinced that it said the total amount he could buy, but thinking about past papers theres usually only one limiting factor, so maybe it was just labour hours, argh!
Did anyone out there answer it as if the 1500 was additional?
You are probably right actually - if there was only one limiting factor then surely we wouldnt be asked for 3 ways to resolve it would we? I dont remember that from any previous papers
on section 2 can anyone remember figures? think my overall variance was in the vague region of 2000 adverse, but might have been bigger, can't really remember...
Was it right to include contribution as part of the operating statement?
I answered it as 1,500 total. To everyone else that answered it that way did you find that the original production amount couldn't be met?
I had it as two limiting factors too. Mat's & Labour.
Did anyone find the second half confusing the way it was written?
I have messed that up then! I read it as how to produce more in that period - so keeping extra stock wouldnt help so I said the opposite - to reduce the finished goods stock. I also said to take on extra staff
I meant keep extra raw materials stock so when there's a short fall you've got some in supply, not that you should keep more finished goods. So don't panic, expect you did fine!
Yeah i was just trying to think what the three things could be if there was only labour, but can only think of two
on section 2 can anyone remember figures? think my overall variance was in the vague region of 2000 adverse, but might have been bigger, can't really remember...
Was it right to include contribution as part of the operating statement?
I had £1945 adverse I think.
on section 2 can anyone remember figures? think my overall variance was in the vague region of 2000 adverse, but might have been bigger, can't really remember...
Was it right to include contribution as part of the operating statement?
I had 1,960,000 adverse (I'm assuming your 2000 figure is with the 000 knocked off or one of us is well off!!).
Edit: I put contribution on my statement because it asked for it. I had something like
Turnover
Variable costs
Materials A, B, C
Labour
Electricity
Contribution
Fixed costs
Rent
etc
Profit
Another question I wasn't sure of because normally you just have to produce an operating statement in the same format that the budget and actual are given.
@mowzer and cortez: (and ayone else to whom this applies) I'm interested in your comments re wording. Once the papers are online next week please have a look and C&P specific examples into an exam feedback email? The email address is at the end of the exam feedback questionnaires (http://www.aat.org.uk/surveys/examsstudentfeedback/).
Will do.
Oliver1987
06-12-07, 16:18
I answered it as 1,500 total. To everyone else that answered it that way did you find that the original production amount couldn't be met?
I did it this way and also came to the same result.
I had £1945 adverse I think.
I had that aswell, I was a bit worried because it said comment on all the variences over £50,000 and most of mine were over that!
I had 1,960,000 adverse (I'm assuming your 2000 figure is with the 000 knocked off or one of us is well off!!).
Edit: I put contribution on my statement because it asked for it. I had something like
Turnover
Variable costs
Materials A, B, C
Labour
Electricity
Contribution
Fixed costs
Rent
etc
Profit
Another question I wasn't sure of because normally you just have to produce an operating statement in the same format that the budget and actual are given.
Will do.
I forgot about the contribution bit and did it the same as a normal layout, but thinking about it now, the way you have done is correct, so ive def messed that bit up!
Actually scrap that ... I had 1,960 up until the Contribution bit. Then I thought I better add the fixed costs at the bottom and I'm pretty sure I had £1,945 adverse for profit as well.
For the actual Energy variable cost what did everyone get? Did you just do 60,000 * £18? Which gave you the same as budget but then you had a 30k variance on the fixed part?
I had that aswell, I was a bit worried because it said comment on all the variences over £50,000 and most of mine were over that!
Most of mine were too. I panicked at first but when i wrote report i sort of bundled all the material into one because it was really the same thing and ended up with probably an average length report for this type of question
oh no - I have messed that up too. I did it the same as the original layout - do you think I will fail for that? I was really pleased with how PCR went today, especially following the disaster I had with PEV
Actually scrap that ... I had 1,960 up until the Contribution bit. Then I thought I better add the fixed costs at the bottom and I'm pretty sure I had £1,945 adverse for profit as well.
For the actual Energy variable what did everyone get? Did you just do 60,000 * £18? Which gave you the same as budget but then you had a 30k variance on the fixed part?
Sounds right, did you work the actual varaible cost of energy?
I did it using the budgeted fixed cost (440,000(?)) and raking that away from the actual total
I thought this was wrong because the other fixed costs had changed but didn't know what else to do!
I did it this way and also came to the same result.
Same here
I thought the paper was okay on the whole, but now realised I made a massive mistake :crying: I thought there were two limiting factors in the first section, which baffled me at the time, but I have just realised that there was of course opening stock of materials available on top of the 1,500 square metres he could purchase :(
I guess I have failed then.
Sounds right, did you work the actual varaible cost of energy?
I did it using the budgeted fixed cost (440,000(?)) and raking that away from the actual total
I thought this was wrong because the other fixed costs had changed but didn't know what else to do!
No I didn't do that. I left the VC at the rate at which it had been budgeted (£18 per unit).
So for variable costs I had
Budget 1,080,000
Actual 1,080,000
Fixed costs
Budget 440,000
Actual 470,000
It was either keep the fixed cost the same and have the variance on the variable cost or keep the variable cost the same and have the variance on the fixed cost. No idea which one it should be and the question didn't give any hints from what I remember so just 50/50 for which method I did :001_unsure:
No I didn't do that. I left the VC at the rate at which it had been budgeted (£18 per unit).
So for variable costs I had
Budget 1,080,000
Actual 1,080,000
Fixed costs
Budget 440,000
Actual 470,000
It was either keep the fixed cost the same and have the variance on the variable cost or keep the variable cost the same and have the variance on the fixed cost. No idea which one it should be and the question didn't give any hints from what I remember so just 50/50 for which method I did :001_unsure:
Hmm, the question was just ambiguous as far as could tell
think i'll mention it to aat by email, unless when i read it again its perfectly clear, n I'm just wrong, lol....
:confused1:
:001_unsure:It never actually said to do the production statment using the marginal way so i was confused about that because it said show contribution...i just did it the same way as on paper as it never technically said which way you had to do it
Howdid you get the contribution figure?
:001_unsure:It never actually said to do the production statment using the marginal way so i was confused about that because it said show contribution...i just did it the same way as on paper as it never technically said which way you had to do it
did you show the contribution though? If not, do you think we will lose loads of marks for not doing it that way?
Contribution is a marginal costing term, as it's a contribution towards payment of fixed costs. Under absorption costing, fixed costs are absorbed into costs of production.
i dont think we will lose a major amount of marks...i hope not anyway but sounds like a few ppl have dont it like us...just ave to not think about it.
i no its a marginal costing term but compared to previous years papers the wording was crap
Oliver1987
06-12-07, 16:41
Most of mine were too. I panicked at first but when i wrote report i sort of bundled all the material into one because it was really the same thing and ended up with probably an average length report for this type of question
Actually scrap that ... I had 1,960 up until the Contribution bit. Then I thought I better add the fixed costs at the bottom and I'm pretty sure I had £1,945 adverse for profit as well.
For the actual Energy variable cost what did everyone get? Did you just do 60,000 * £18? Which gave you the same as budget but then you had a 30k variance on the fixed part?
I'm sure I had 1,990 up until the contribution as i kept my fixed cost the same for the energy which meant the variable changed to 18.50. Did anyone else do this? :huh:
It was sneaky just mentioning contribution n not being a bit more explicit
i kept the fixed costs the same, not sure what the cost per unit but we prob dod the same thing. i just couldn't see any other way
I did it this way and also came to the same result.
i dont think we will lose a major amount of marks...i hope not anyway but sounds like a few ppl have dont it like us...just ave to not think about it.
I did it the same as you too, just got confused about it so thought i'd just leave it out instead of messing it all up, lol
I spend so long on Task 1.1 ... think I was 45 minutes or so before I finished that. I got to the end of it and then realised I hadn't done anything with opening and closing stock on the purchases budget so changed that and most the answers after than needed changing too!
Antoher question that I was a little confused with was the overtime, it said apportion overtime on the basis of average hourly rate ... what did everyone else take this to mean?
I took the total labour cost which was 1400 hours @ 8 + 495 hours @ 12 = 17140 and divided it by the number of hours 17140 / 1895 = 9.05 (rounded up to nearest penny).
Then when doing the total cost of production for each of the cartons I multiplied that by the number of hours I had calculated previously so I had something like ...
Labour
250ml = 1263 * 9.05 = 11431
500ml = 632 * 9.05 = 5720
Which is a total of 17151 .... £11 different due to rounding.
Anyone else do something similar to that?
accountschic
06-12-07, 16:44
:huh:Hi
Yes I asumed it was his order already in and therefore all he could get.
I agree that if you did this then the revised plan could not be met by materials or labour.
I agree with everyone that it was porrly worded and not clear what you were been told or asked to do.
Considering it's technician and therefore complex enough with number crunching I don;t think we all need that added confusion. Afterall AAT are big on work place simulation well at work we know what we are aksed and expected to do.
Maybe both answers will be acceptable since we seem 50/50 and wording was bad.
What did you all think to the labout at average hourly rate... myself and my mates went blank.
I really should be revising PTC for tomorrow!
I spend so long on Task 1.1 ... think I was 45 minutes or so before I finished that. I got to the end of it and then realised I hadn't done anything with opening and closing stock on the purchases budget so changed that and most the answers after than needed changing too!
Antoher question that I was a little confused with was the overtime, it said apportion overtime on the basis of average hourly rate ... what did everyone else take this to mean?
I took the total labour cost which was 1400 hours @ 8 + 495 hours @ 12 = 17140 and divided it by the number of hours 17140 / 1895 = 9.05 (rounded up to nearest penny).
Then when doing the total cost of production for each of the cartons I multiplied that by the number of hours I had calculated previously so I had something like ...
Labour
250ml = 1263 * 9.05 = 11431
500ml = 632 * 9.05 = 5720
Which is a total of 17151 .... £11 different due to rounding.
Anyone else do something similar to that?
I didn't do that but it could be right. i didn't have a clue n think i wasted a good five minutes just looking at that sentence. :mad2:
I spend so long on Task 1.1 ... think I was 45 minutes or so before I finished that. I got to the end of it and then realised I hadn't done anything with opening and closing stock on the purchases budget so changed that and most the answers after than needed changing too!
Antoher question that I was a little confused with was the overtime, it said apportion overtime on the basis of average hourly rate ... what did everyone else take this to mean?
I took the total labour cost which was 1400 hours @ 8 + 495 hours @ 12 = 17140 and divided it by the number of hours 17140 / 1895 = 9.05 (rounded up to nearest penny).
Then when doing the total cost of production for each of the cartons I multiplied that by the number of hours I had calculated previously so I had something like ...
Labour
250ml = 1263 * 9.05 = 11431
500ml = 632 * 9.05 = 5720
Which is a total of 17151 .... £11 different due to rounding.
Anyone else do something similar to that?
I read it as to charge them at the average hourly rate which would £10.00 (£8 normal & £12 Otime) So did:
1263*10
632*10
but this gave me a higher figure so this was maybe wrong?
Oliver1987
06-12-07, 16:49
I also did a similar thing with the labour. It seemed like the most appropriate thing to do.
The wording really was awful throughout the paper.
On the 1st section when did everyone convert the materials from Square Cm's to Square Metres? I did part (b) with the wasteage included and everything, and then part (c) said 'what is the production in square metres' so i just multiplied my part (b) answer by 10,000. Anyone else do something similar?
Hi, I had same figures for labour, but panicked with the cost of production and just put total figures in for materials labour and overheads, I know this isnt what they asked for but I couldnt get my head round splitting it all out. Thought the paper was ok after PEV on Monday.:thumbup1:
I assumed that because the requirement to produce a flexed budget said "produce a flexed budget for actual turnover" rather than "actual volume; then the flexed budget turnover should be for the new rather than the original sale price. Did anyone else think that?
On the 1st section when did everyone convert the materials from Square Cm's to Square Metres? I did part (b) with the wasteage included and everything, and then part (c) said 'what is the production in square metres' so i just multiplied my part (b) answer by 10,000. Anyone else do something similar?
In part B after wastage and opening/closing stock I left it in cm2.
In part C I divided my answer to B by 10,000.
On the 1st section when did everyone convert the materials from Square Cm's to Square Metres? I did part (b) with the wasteage included and everything, and then part (c) said 'what is the production in square metres' so i just multiplied my part (b) answer by 10,000. Anyone else do something similar?
yeah, but divided answers by 10,000
accountschic
06-12-07, 16:53
I di that and got same variance as you.... then went on to waffle wondefully about the beauty of the variances!!
I am looking forward to a serious latge glass of wine after PTC tomorrow!!
:huh:Hi
Yes I asumed it was his order already in and therefore all he could get.
I agree that if you did this then the revised plan could not be met by materials or labour.
I agree with everyone that it was porrly worded and not clear what you were been told or asked to do.
Considering it's technician and therefore complex enough with number crunching I don;t think we all need that added confusion. Afterall AAT are big on work place simulation well at work we know what we are aksed and expected to do.
Maybe both answers will be acceptable since we seem 50/50 and wording was bad.
What did you all think to the labout at average hourly rate... myself and my mates went blank.
I really should be revising PTC for tomorrow!
I did the same as you and came to the conclusion that both materials and labour were limiting factors, but I forgot to take into account the opening stock of materials. With that added to the 1,500metres was it still limited by material? I can't honestly remember what the figures were!
Just have to hope I got follow through marks and can still pass....
I converted sq cms to sq metres, then:
Total sq mtres
Less opening stock
add closing stock
then the wastage
I think that mite have been an error on my part, did anyone else do the same or have i fluffed it badly!!! hope not cos I thought the paper was generally ok.
What did everyone put for the question ... advise whether the change in selling price was beneficial?
Oliver1987
06-12-07, 16:56
I divided also.. am really confused.
80sGuitarSolo
06-12-07, 16:56
Cortez, I had exactly the same fgures as you :001_smile:
i said it wasnt beneficial cos they had budgeted the selling price at 300 and it was actually 275..is this wrong?
In part B after wastage and opening/closing stock I left it in cm2.
In part C I divided my answer to B by 10,000.
Yeh sorry, i meant divide not multiply. You got the same as me then mate.
I converted sq cms to sq metres, then:
Total sq mtres
Less opening stock
add closing stock
then the wastage
I think that mite have been an error on my part, did anyone else do the same or have i fluffed it badly!!! hope not cos I thought the paper was generally ok.
I did it differently to that I think.
For material usage budget I had:
Material required for production budget
Add wastage
= Total material required
Then for purchases budget I had:
Total material required
Less opening stock
Add closing stock
= Total material to purchase
Not sure whether that's right or not though.
What did everyone put for the question ... advise whether the change in selling price was beneficial?
I said no but could be if costs were lower for customer loyalty reasons, bigger share of market etc. probably all nonsense!
I'm now scared that its all wrong tho cos it said turnover not production volume!
I converted sq cms to sq metres, then:
Total sq mtres
Less opening stock
add closing stock
then the wastage
I think that mite have been an error on my part, did anyone else do the same or have i fluffed it badly!!! hope not cos I thought the paper was generally ok.
I worked in Sq cm
added wastage
converted to sq metres
add closing stock
less opening stock
might have been wrong though? I duno??? Think I messed everything up!
I said no but could be if costs were lower for customer loyalty reasons, bigger share of market etc. probably all nonsense!
I'm now scared that its all wrong tho cos it said turnover not production volume!
Me too, I completely missed that if it did say that.
I went on about market share etc and I don't think I actually said whether it was beneficial or not ... more like, well it depends what the aim of the company is ... if they wanted to increase market share then a lower selling price is beneficial but if they "had enough" market share and were only interested in profits than it was not beneficial.
... So probably zero marks for me on that one :lol:
I said no but could be if costs were lower for customer loyalty reasons, bigger share of market etc. probably all nonsense!
I'm now scared that its all wrong tho cos it said turnover not production volume!
I worked in production volume aswell and i reckon most people would have! Did it not say to just show the flexed turnover?
Oliver1987
06-12-07, 17:02
yeah, but divided answers by 10,000
i said it wasnt beneficial cos they had budgeted the selling price at 300 and it was actually 275..is this wrong?
I got the same selling price as you. Therefore it wasnt beneficial
What did everyone put for the question ... advise whether the change in selling price was beneficial?
I put yes it was, because if the other variences had remained the same then it would have actually resulted in more profit. By saying this though, i assumed the extra 10,000 units sold were becasue of the lower price.
What did you put?
I put yes it was, because if the other variences had remained the same then it would have actually resulted in more profit. By saying this though, i assumed the extra 10,000 units sold were becasue of the lower price.
What did you put?
Seems reasonable.
See #64 for mine!
I wasn't feeling too bad before but after reading these comments i'm not too confident now, i know i've messed a few things up (didn't even notice that wierd bit about labour overtime in task 1.1) but as i said before i've been 100% sure i've failed in the past and i've ended up passing.
i'm feeling quite sick, thought i had done ok (well anything was better than horrid PEV) but not so sure now hmmm oh well it is over now on to PTC revision :huh:
I'm not too convinced I did well on this paper! I read the questions to make sure I was giving the answers they were asking for but I am not sure that I even did that correctly.
Hopefully by showing all my workings logically it will show that I knew what I was doing even if the final answer isn't correct.
Nothing I can do about it now, just got to wait untill February for the results to see if I will be doing a resit in June 08.:crying:
I wasn't confident coming out and am now even worse.
I had two limiting factors which I know a few others had and completely missed the contribution part at then end and just listed them and had an overall adverse variance of £1,945,000.
Oh well, I'm so gutted, but nothing I can do about it now - onto to PTC tomorrow, then a girlie night out - can't wait!
Same as Ally. I took it as he could only purchase in 1500 but I got a feeling that that was extra - thinking back over it cuz he said he made the purchase and could only get max of 1500 for Jan.
So labour would have been the only limiting factor.
The like you 1,945,000 for section 2. Its funny cuz I did it in the same way as the question.....then sat there for ages and started doing the marginal costing way. But then something in my head said, no as you do not have all the information to split the fixed costs up. Most papers had what the variable cost actually was or what the actual fixed costs were. Otherwise you had to make assumptions that either the variable cost was the same as the budget or that the fixed costs were the same as the budget!
Difficult one. I wouldn't worry though - remember the way they mark it is based on the performance overall over the country etc. If everyone found difficulty with the questioning, they'd take that into consideration. Its not that you did not know how to do it, they confused you!!!!
I'm really disappointed i thought I was well prepared for PCR but i totally messed up section 2 by using absorbtion costing i just wish they had made it clearer marginal costing was to be used :crying: I am really confused by the turnover/volume basis for flexing the budget it just seemed so strange to have use the actual sales and the budget costs - so I based it on the actual volume. I'm guessing thats enough mistakes to make a fail
I just got confused cuz most marginal statement questions have closing stock figures. i.e produced 70,000 and sold 60,000. Then the contribution would have been obvious as you flex the budget to reflect this on marginal costing!!!
i felt awful coming out of my pcr exam today thinking that i had wasted my time revising and sitting the exam... but knowing that everyone has similar opinions regarding the poor wording of much of the paper and that my answers match with some of those mentioned i don't feel so bad... on to ptc revision... hmmm...
good luck to all for any exams still to come
:confused1:
I am not sure how i've done now. I understood it as he had ordered 1,500 and couldn't get anymore as well. I'm more confused now than when i did it this morning.
I took the question to mean that the max you could have was 1500 and this was less than you needed for both production levels after stock adjustments.
I didn't adjust for stock in the flexed budget...but then my figures were based on 60k units.....I never remember about the stock. And I had about 4 variences over 50k to talk about (if you include material as 1)
Both Material and labour were limiting factors based on my calculations and reasoning...but I couldn't get my material to work backwords to see how many production units it was short!
I hope the people working out the marking method read the forum! The rumor mill says that a group get together with white boards and write down areas people have problems with....including feedback as discussed further back. Then they work out how many errors to allow.
I hate competancy based exams...bring in the 50% pass :P
I'm really disappointed i thought I was well prepared for PCR but i totally messed up section 2 by using absorbtion costing i just wish they had made it clearer marginal costing was to be used :crying: I am really confused by the turnover/volume basis for flexing the budget it just seemed so strange to have use the actual sales and the budget costs - so I based it on the actual volume. I'm guessing thats enough mistakes to make a fail
Can you please explain what you mean when you say you based it on the actual volume. I thought that is what we were supposed to do - flex the budget from 50000 to 60000 - have I done it wrong?
I flexed on volume Emma, seemed the logical thing to do, flexing from 50000 units to 60000, I also included the contribution, and calculated the variable cost of energy as the same as budget resulting in a zero variance adjusting the fixed costs of energy and showing the variance there!!
accountschic
06-12-07, 19:12
I don;t think you are wrong. I think the opening stock / closing was of finished production not raw materials.
I don't think missing that if it should be there is a fail anyway.
I think the labour at average hour rate was horrible so badly worded. I spent ages just trying to understand that.
I'm hoping PTc is better in teh morning!
I flexed on volume Emma, seemed the logical thing to do, flexing from 50000 units to 60000, I also included the contribution, and calculated the variable cost of energy as the same as budget resulting in a zero variance adjusting the fixed costs of energy and showing the variance there!!
Thats what I did - is it completely wrong then or just that it was done on absorption not marginal?
sorry if i wasn't clear i think my head is still spinning from the exam! I'm still confused as to whether sales should based on actual TURNOVER (16,500,00) or actual sales at budget selling price (300 x 60,000 = 18,000,000) as the wording on the exam just said actual turnover..........:confused1:
GoldenRetreiver
06-12-07, 20:38
Hi I came out of the exam not too bad - until now. When will AAT stop trying to trip us up with questions that are clear and concise. All I did was do the same as the layout as in the paper but flex the budget to 60,000. I came up with an adverse variance of about 194500
Yes Mowzer - it specifically asked that in the question so you are right to show the contribution. For section 1 I thought material was the limiting factor as there were enough labour hours available to meet revised production.
Yes Cortez. I had similar figures to you for the hours required Task 1.1 but the labour rate I took it as £8 + £12 = £20/2 = £10 to get the average
I am glad I am not the only one that found 1500 couldn't even cover the original demand for materials... I kept thinking I must have done something wrong. I don't recall seeing anything like that on any previous paper.
Also found the cost of production for each type of product difficult due to opening and closing stock of raw material. I excluded opening and closing stock of materials... only calculated material required for production and added on wastage. How did anyone else do on that?
Reading other people posts I think I might have done task 2.1 wrong too. I left the flexed budget and actuals in the same format as the question... I don't recall it mentioning marginal costing.
Well, I guess we find out in over 2 months... :crying:
No point in worrying about it now... just focus on Christmas now! :) Bring on the mince pies! ::001_tt2:
Interested to hear what everyone else thought!
Manu
I have read all the posts and feel I have to comment having heard so many negative comments recently. I sat both PEV & PCR. I study through distance learning & sit my exams at a college 2 hours drive away. This year I looked on the AAT site & saw that I could sit the exams in my home town. I booked these & was sent confirmation in Oct with the address, desk no. etc. On Friday last week I rang the local college to confirm I was going to the correct building. I was told I was not sitting the exam there as AAT had made a mistake. AAT told me they had only just found out that the college wouldnt take external candidates.
The said college tells me AAT had known for "weeks" and should not advertise their college.
If I had not rang this college I would not have found out until Monday a.m. that I had to drive another 2 hours away therefore missing the exam.
After feeling let down over the weekend I attended the PEV exam. I have to agree with the all the comments made about section 1, it was not as expected.
AAT state that they encourage comments but "please make sure its specific" not just statements like it was "horrible" or "not what I was expecting" .
Sorry I thought this was a forum for students, in which comments like that help support each other.
I also agree that the PCR & PEV exam did not make questions clear, for example in PCR if the 1500 sq.m was additional to an amount already ordered or not ( I could go on)
Well lets hope February brings good news for us all & AAT please let me know where my re-sits will be next year!!
I converted sq cms to sq metres, then:
Total sq mtres
Less opening stock
add closing stock
then the wastage
I think that mite have been an error on my part, did anyone else do the same or have i fluffed it badly!!! hope not cos I thought the paper was generally ok.
I did it the same way as you, seem easier to do like that. :thumbup1:
I have read the comments with interest and just have to reply. With regard to the material as a limiting factor, I have done what most people seem to have done and taken this to be limited. Surely if it is company policy to keep 5 days supply (or whatever it was) of materials in stock then this should be maintained. I did put in my memo that the stock could be used to meet the order but I still had it as a limiting factor.
The other thing is the flexed budget. Do I remember reading there were no opening or closing stocks? In which case the production and turnover quantities would be the same. So stop worrying folks.
I feel reasonably happy with this exam. Not so sure about the PEV though.
Nice to talk to you all. This is my first post. Hopefully not my last
lmiddleham
07-12-07, 16:38
The overtime premium in working out the total cost of production noone seems to have matched my way of splitting it across products?
As 1 product took 200 hours and the other took 160 i did it like this:
Total overtime premium x 200/360 total hours over both products = overtime premium for 250ml
Total overtime premium x 160/360 for 500ml
The figures I got with this matched my figures in my total labour budget from earlier so at least I got some consistency!
Did anyone else do it this way though?
The overtime premium in working out the total cost of production noone seems to have matched my way of splitting it across products?
As 1 product took 200 hours and the other took 160 i did it like this:
Total overtime premium x 200/360 total hours over both products = overtime premium for 250ml
Total overtime premium x 160/360 for 500ml
The figures I got with this matched my figures in my total labour budget from earlier so at least I got some consistency!
Did anyone else do it this way though?
Hi Imiddleham,
I worked it out the same way as you - was feeling confident about the exam but after reading all the posts starting to get a bit worried.
I also worked out the materials using the same way - obviously not with labour hours but materials needed to make each type of carton.
lmiddleham - I did it that way too!
I remember seeing something like this come up in the past except it was based on production - I remember sitting for ages thinking how they worked it out! Luckily I remembered for the exam!
Hi Imiddleham,
I worked it out the same way as you - was feeling confident about the exam but after reading all the posts starting to get a bit worried.
I also worked out the materials using the same way - obviously not with labour hours but materials needed to make each type of carton.
The overtime premium in working out the total cost of production noone seems to have matched my way of splitting it across products?
As 1 product took 200 hours and the other took 160 i did it like this:
Total overtime premium x 200/360 total hours over both products = overtime premium for 250ml
Total overtime premium x 160/360 for 500ml
The figures I got with this matched my figures in my total labour budget from earlier so at least I got some consistency!
Did anyone else do it this way though?
I think this way would only work if you make the same number of units for each product, and therefore labour hours used are still in the 200:160 ratio.
If you make 100 of one product and only 1 of the other then the labour hours used would no longer be in the ratio 200:160 so, then allocating the overtime premium 200/360 and 160/360 doesn't seem right.
I've explained that badly so hopefully someone else can think of a better way of writing it!
Hi Kris,
I think I understand what you're saying, but the course book I have works that way with having different numbers of units for each product.
Just have to wait and see at the end of Feb - fingers crossed for everbody!
StephParker
08-12-07, 22:28
Hey guys. Ive just realised I divided materials in cm2 by 1000 to get m2 and not 10,000 as it stated in exam. Any one else do this? How did u find it overall? What about PTC? Merry X-mas guys.
lmiddleham
10-12-07, 12:52
Don't know how to directly quote a comment but this is a reply to Kris when she said
"I think this way would only work if you make the same number of units for each product, and therefore labour hours used are still in the 200:160 ratio.
If you make 100 of one product and only 1 of the other then the labour hours used would no longer be in the ratio 200:160 so, then allocating the overtime premium 200/360 and 160/360 doesn't seem right.
I've explained that badly so hopefully someone else can think of a better way of writing it!"
I see what you're saying about splitting labour that way when production isn't equal but I think the question stated that overtime premiums are to be allocated equally across the two products. I read this to mean regardless of production levels.
Zoeyar: I didn't work out the materials the same way. My material cost was already worked out via the budget questions so I just used these figures.
Wow there are a lot of differences of opinion on this paper! I'm pretty confident that the differences we've all got aren;t major though and if the main bulk of our theory and answers are right, these debating points won't fail the paper.
Good luck!
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