Help costing - Task 2.4 5 December 2005 paper

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi, just spent a ages trying to work something out without success can anybody help?

Costing Exam Paper 5 December 2005 - Section 2.4

Total Contribution earned for Product P = £49,500 How is this calculated? any help please this is driving me nuts

Many Thanks

:roll:

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help costing - Task 2.4 5 December 2005 paper

    You should have calculated the contribution per machine hour for P as 27.50. You'll have 1,800 machine hours available to make P. So total contribution = 27.5 x 1800 = 49,500

    Hope that helps

    Chris
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help costing - Task 2.4 5 December 2005 paper

    Many Thanks, still not clear though.

    I understand this point made CJC many Thanks, but my problem is I am given the figure of 1800 machine hours only. How do I calculate to get to the £49,500 once I have this figure then I understand the calcultation of working out the machine hour of 27.50.

    The figure of 1800 machine hours are only listed, I must work out how to get £49,500 then after I can get my 27.50 machine hours.

    Many Thanks for your advice before.

    Regards

    Mike
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help costing - Task 2.4 5 December 2005 paper

    Ummmm... not quite what your difficulty actually is.

    You've worked out the contibution per machine hour as 27.50

    You are making 1,800 machine hours worth of product.

    Total Contibution will be:
    cont per machine hour x machine hours = 27.50 x 1,800 = 49,500

    Alternatively

    Machine hours per unit = 0.008
    Units made in 1800 hours = 1800/0.008 = 225,000
    Cont per unit = 0.22
    Total cont = 0.22 x 225,000 = 49,500

    Chris

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help costing - Task 2.4 5 December 2005 paper

    Chris,

    Gotcha !!!

    OK, I understand it now as:-

    Machine Hours Required is 2,000
    Units Made Divide by 250,0000
    =======
    0.008
    =======

    The rest I can calculate with no problems now, I just could not get that starting point as above.

    One more brain cell and I could be bloody deadley!!!

    Many Thanks Chris

    Have a great Weekend and good luck with your exams too.

    :thumbup:

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help costing - Task 2.4 5 December 2005 paper

    Hi,
    I'm completely lost.
    Could someone tell me where exactly the 300 and 1800 come from?
    Thank you
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help costing - Task 2.4 5 December 2005 paper

    Hi Diego,

    Look at the Additional data at the top of Page 16 "Aditional Machine hours reduced to 2100" Then switch back to Page 14 "adional Data too" Machine Hours 300 is supplied for Product N so 300-2100 = 1800 machine hours for product P.

    Hope this helps

    Regards

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help costing - Task 2.4 5 December 2005 paper


    150,000 x 0.002 = 300 ??
    250,000 x 0.008 = 2000??
    And then to allocate the machine hours I choose 300 and the rest 1800(=2100-300)to product P.

    Is that right?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help costing - Task 2.4 5 December 2005 paper

    Mouse2mouseuk,

    Thanks for the help. It took me two precious hours to understand it.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help costing - Task 2.4 5 December 2005 paper

    Diego,

    It took me the same time to understand it too but now I can do the scenarion in about 5 mins, just learn the formulas and you should be ok.

    Good Luck too you too

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help costing - Task 2.4 5 December 2005 paper

    Thank you,

    Good luck to you as well.

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