Variable mariginal cost and full absorption c- a huge confusing!
any2002uk
Registered Posts: 88 Regular contributor ⭐
I have been pactice the past exam papers. Once i learnt the technique in June 2008 in task 1.6.
b) Variable (marginal) cost
£
Prime cost £57,076
Variable overheads £48,064
Variable cost £105,140
Divided by number
of batches 15,020
Variable cost/batch £7.00
So now i know how to find the variable costing from June 2008 and do June 2005 but the answer is completed WRONG even i use the same formula, a look at June 2005 exam paper in task 1.6 so i calculated it exactly the same way as JUNE 2008 i am very angry and confuse that AAT examiners are trying to tricky and try to make us fail .
Here is what i workout the answer.
b) Variable (marginal) cost
£
Prime cost 27
Variable overheads 80,000
Variable cost 80,027
Divided by number
of batches 10,000
Variable cost/batch £10.00
Here is the correct answer from AAT past paper more confuse, so which one i should follow for DEC 2008 without to fail my exam just because AAT examiners are trying to make my exam harder.
Direct materials 316.80
Direct labour 412.50
Variable overheads
£197,800 / 230 batches 860.00
Total variable cost per batch 1,589.30
Now can you see what i mean between 2 complete huge different answer even i use June 2008 formula then do it in June 2006 and my answer is incorrect. please explain to me.:confused1:
b) Variable (marginal) cost
£
Prime cost £57,076
Variable overheads £48,064
Variable cost £105,140
Divided by number
of batches 15,020
Variable cost/batch £7.00
So now i know how to find the variable costing from June 2008 and do June 2005 but the answer is completed WRONG even i use the same formula, a look at June 2005 exam paper in task 1.6 so i calculated it exactly the same way as JUNE 2008 i am very angry and confuse that AAT examiners are trying to tricky and try to make us fail .
Here is what i workout the answer.
b) Variable (marginal) cost
£
Prime cost 27
Variable overheads 80,000
Variable cost 80,027
Divided by number
of batches 10,000
Variable cost/batch £10.00
Here is the correct answer from AAT past paper more confuse, so which one i should follow for DEC 2008 without to fail my exam just because AAT examiners are trying to make my exam harder.
Direct materials 316.80
Direct labour 412.50
Variable overheads
£197,800 / 230 batches 860.00
Total variable cost per batch 1,589.30
Now can you see what i mean between 2 complete huge different answer even i use June 2008 formula then do it in June 2006 and my answer is incorrect. please explain to me.:confused1:
0
Comments
-
If you read the information provided on the 05 and 06 paper you will see that the Direct Material and Direct Labour figures provided are Per Unit, and not the total as in the June 08 paper. Therefore, to calculate your answer you do not need to divide these amounts by the batch total to find the cost per unit.
To use the June 05 as an example you are given the following information:
Direct materials per unit £10.60
Direct labour per unit £16.40
Total variable overheads £60,000
Total fixed overheads £80,000
Number of units produced 10,000
Therefore, to find the variable cost per unit you need to divide the total variable overheads (£60,000) by number of units produced (10,000) and add this to the Direct materials/labour per unit.
£10.60 + £16.40 + £6 = £330
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 318 NEW! Qualifications 2022
- 156 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 92 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 274 Tax
- 136 Bookkeeping
- 7.2K General accounting discussion
- 201 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership