PEV answers query

hunter

I have looked at the answers supplied kindly by Sandy and the examination paper for the Dec PEV paper.

Has any one else noticed that the price for the bags for the tea doesn't match up? Task 1.2 standard cost card.

On the exam paper it states that the tea bags are 0.6 pence per bag, Sandy has answered the question stating: 1000 @ £0.0060 = £6.00.

I am also convinced that the paper I had on the day said that the tea bags were 0.060 which I worked out to be 1000@ 0.060 = £60.00.

So my cost card read:

Direct Materials (loose tea) 3kgs @ £5.00 = £15.00
Direct Materials (bags for the tea) 1000 @ £0.060 = £60.00
Direct Labour 0.2 hrs @ £10.00 = £ 2.00
Fixed production overheads 0.2 hrs @ £50.00 = £10.00

TOTAL £87.00

Am I going mad?!! Can anyone shed any light on this please?:001_unsure:

SandyHood

Tea bags cost 0.6 pence per bag
see page 4 of
http://www.aat.org.uk/servlet/file/PEV_December_2007_Questions.pdf?ITEM_ENT_ID=70276&COLLSPEC_ENT_ID=34

This means less than 1p

Look at what you have written

You have said they are 6p per bag

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