PEV Exam

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Exam

    I think I did it in the same way?

    My marginal costing statement included the overheads. The standard cost of total production was variable cost for units + budgeted overheads. Less the variances (including 20k? expenditure difference for overheads) = total actual cost of production.

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Exam

    This is what I remember of the margianl statement

    Standard cost (Variable)
    £13.50 x 11500 units £155,250
    Material Price £11,250A
    Material Rate £6,000F
    Labour rate £2,500F
    Labour effciency £1,750A
    Total variance £4,500A

    Plus budget overheads £240,000
    plus overhead exp £20,000

    Actual production cost £419,750
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Exam

    yes PM i did that apart from I didnt split down budgeted and variance. i dont think thats a major problem, it just means i am not very bright :oops:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Exam

    That looks pretty spot on, good memory!

    In that case I did

    Variable std costs + budgeted overheads=total std cost
    £13.50 x 11500 units + £240,000 = £395250
    Material Price £11,250A
    Material Rate £6,000F
    Labour rate £2,500F
    Labour effciency £1,750A Subtotal here
    Overhead exp variance £20,000A

    = Actual production cost £419750

    Essentially the same answer just putting the budget O/H in different place.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Exam

    and yes, i wish i could have been handed my results on the way out :lol:

    anyway, we can all panic and go into "lemming" mode.... small errors here and there shouldnt have a drastic affect if you have knowledge and understanding :)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Exam

    Quite right Michelle. One exam down two to go. Got DFS and PCR this week. Thank god I didn't do all five this week.

    Good luck for the rest of the exams
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Exam

    I did DFS in december. Good luck, Im sure you will be fine :lol:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Exam

    Nobody has said much about how they calculated stock turnover. You're supposed to use average stock, i.e. (open+close)/2. They gave you the figures for production, sales, and so on so you could calculate opening stock, but for the subsidiary it was negative. Anyone see this?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Exam

    :cry: Am I the only one in Wales that found today a nightmare? I can't belive people found this easy... I found some sections of it very badly worded which completely put me off.

    My reconciliation statements I did the wrong way round to start as I couldn't decipher the way 1.1 c & d were worded. Didn't expect Seasonal Variations in this one either.

    Section 2 - :cry: Got Stock Turnover completely wrong as I used Turnover and not Cost of Sales and I couldn't remember ever doing Capacity & Efficiency Ratios - what on earth are these?? Recalculating ROCE - what were we supposed to do with that one? And Target Costing??
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Exam

    In our course we learnt someting called a lazy E, I think that this was something that our tutor came up with, but it worked, This envolved plotting the information in an E shape, and the variances and ratios are in the gaps, (Bit hard to explain but seems to do the job)

    As for the wording, i also felt that some of the wording was a bit on the poor side and was not as clear as to what it wanted doing!

    But hey ho, atleast we know what to expect in the other exams! the unexpected!!!

    M

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