Pcr

Kris

Zoeyar wrote: »

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 wrote: »

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!

Zoeyar

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

Woops

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

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!