How do we think PEV went?
Comments
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Section 2.2 I thought you had to add your costs together as if you producing the turbine at a per turnbine basis ie 2.2 a1 was £800 (£300 for materials £200 for labour and £300 for production overheads) 2.2a2 I put £1,050,000/10000 units = £105 per unit unavoidable. 2.2a3 £1,950,000/10000units = £195 avoidable costs. in the report I just compared the £800 per unit being produced inhouse to the £745 per unit on a contracted out basis. (640 for turbine and £105 unavoidable costs) so it made sense to contract out 10,000 units, when I compared 140000 units I found it the other way round0
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I think so but there was a extra line for materials for that asphait or whatever it was called?? Well I added an extra line anyway????0
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I honestly couldn't comment Lee as I totally guessed that one and can't remember????0
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Lee i got the same as you, £105 and £195 but i think i then i did some other random thing!0
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Lee Manning wrote: »Section 2.2 I thought you had to add your costs together as if you producing the turbine at a per turnbine basis ie 2.2 a1 was £800 (£300 for materials £200 for labour and £300 for production overheads) 2.2a2 I put £1,050,000/10000 units = £105 per unit unavoidable. 2.2a3 £1,950,000/10000units = £195 avoidable costs. in the report I just compared the £800 per unit being produced inhouse to the £745 per unit on a contracted out basis. (640 for turbine and £105 unavoidable costs) so it made sense to contract out 10,000 units, when I compared 140000 units I found it the other way round
I was stuck on this one for ages. I did the workings the same way but I ran out of time with the report. I know that I didn't state which option was the best to use correctly as I didn't have enough time to look at what I had calculated.0 -
I added the extra line in for that too! I layed it out like in the 1st section as it wanted a cost card for 250 units....0
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well thats what made sense to me. I first thought that the the two figures related to production overheads and then overheads as the question was worded funny but if you added 1.95m and 1.05m its comes to 3m which was the total production overheads in 2.1 so I assumed the to two figures were talking just about the production overheads0
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I failed this exam in Dec and i failed scetion 1 before but this time round section was easier but hated the section 2 questiion about trubines and Romania blah blah blah!!!!!!!! im gonna be soooooo upset when i see that i have failed i worked sooooo hard!
Does anyone know if Sandy Hood is going to post his anwsers?0 -
Lee Manning wrote: »Section 2.2 I thought you had to add your costs together as if you producing the turbine at a per turnbine basis ie 2.2 a1 was £800 (£300 for materials £200 for labour and £300 for production overheads) 2.2a2 I put £1,050,000/10000 units = £105 per unit unavoidable. 2.2a3 £1,950,000/10000units = £195 avoidable costs. in the report I just compared the £800 per unit being produced inhouse to the £745 per unit on a contracted out basis. (640 for turbine and £105 unavoidable costs) so it made sense to contract out 10,000 units, when I compared 140000 units I found it the other way round
First part was what I got.
Second part, I included the turbine purchase price as part of the unavoidable cost.
Third part, I'm pretty sure you were supposed to include the material and labour costs in the avoidable costs as it said in the task that they wouldn't be incurred(or words to that effect) if production was contracted out.
Agree with your report recommendation as well.0 -
I like it when someone else got the same as me LouLou143, even if we are both wrong just gives me that little biit of reasurrance!!0
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I thought is said materials and labour would be saved hense the whole idea of contracting out?0
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First part was what I got.
Second part, I included the turbine purchase price as part of the unavoidable cost.
Third part, I'm pretty sure you were supposed to include the material and labour costs in the avoidable costs as it said in the task that they wouldn't be incurred(or words to that effect) if production was contracted out.
Agree with your report recommendation as well.
I thought is said materials and labour would be saved hense the whole idea of contracting out?0 -
Yep, you're right Lee it did say that in the question as that was the bit that I got lost upon!!0
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Yes, that's why you include it in part of the avoidable cost. Because contracting out means you avoid paying it.0
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Lol!! Yeah!!!!0
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Oh, I honestly haven't got a clue over that 2.2 question but hey back to the books for DFS!!!0
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When I first turned over the exam paper to read though I couldn't stop smiling as it was all so easy.0
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I got much the same as the other people posting, especially Lee I did the very same.
I guess it seems the majority hated Section 2 especially the turbines!!
I suppose even if we calculated wrong if we go on to explain our own figures well with good arguments then we will get credit.
Gonna a long road to DFS on Wednesday as focused more on PEV.
A long wait till August too.... we all deserve a good ole sess in the pub this weekend!
good luck to anyone with BTC tomorrow and no doubt we will all re convene on Wednesday after DFS!!
:confused1:0 -
Yeh I added those 2 costs into the avoidable costs. Sounds to me like lots of people have done this question differently, which is no surprise as I feel it was very badly worded!
The question was well worded. What differs is how you understand it.
For example, in the unavoidable costs, I included it because I thought that if you contract out production, paying for the units was unavoidable. However, you could argue that as the cost would not have been incurred if you produced the units, it's not avoidable/unavoidable anyway, and instead you would include the purchase cost in the report when comparing producing with contracting out, which sounds like what Lee did.0 -
I wouldn't say it was easy Joyride I did have to think about my answers!!0
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this is what i got for 2.2
10,000 units
£800
£105
£195
14,000 units
£714.29
£75
£77.870 -
Yes, that's why you include it in part of the avoidable cost. Because contracting out means you avoid paying it.
I see what you are saying but that means you must have included the purchase of the wind turbines on the unavoidable costs as this replaces the labour and materials. Thats the only way I can see comparing like for like. I prob wrong but it mad sense the exam not to incude it.0 -
This was my 4th attempt at PEV, this paper was a God send
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It was all about how you interpreted the question and you do get marks on this if you made assumptions....theres nothing to stop you from saying that you assumed because of this etc because of that etc,..this is how I came to the overall conclusion....you would get marked on those assumptions.0
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Joyride, what did you get for your cost card total???0
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The question was well worded. What differs is how you understand it.
For example, in the unavoidable costs, I included it because I thought that if you contract out production, paying for the units was unavoidable. However, you could argue that as the cost would not have been incurred if you produced the units, it's not avoidable/unavoidable anyway, and instead you would include the purchase cost in the report when comparing producing with contracting out, which sounds like what Lee did.
yep did that0 -
Lee Manning wrote: »I see what you are saying but that means you must have included the purchase of the wind turbines on the unavoidable costs as this replaces the labour and materials. Thats the only way I can see comparing like for like. I prob wrong but it mad sense the exam not to incude it.
Yes, like I outlined above, the answers you give are dependent on how you understand the question. We will only really know how the examiner intended for us to understand it once the answers/chief examiners report are released.0 -
Standard cost card
50 x 474 = 23,700
200 x 150 = 30,000
800 x 10 = 8,000
+ 150,000
=211,7000 -
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