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PEV Exam - what did you think?

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Comments

  • HunnieHunnie Feels At Home Registered Posts: 41
    I seem to remember the £414000
    I calculated the additional costs to be:
    Materials 1000 x £60 = £60000
    Labour 1000 x 2 x £14 = £28000
    *It said in the question based on 2 labour hours so I assumed this was how many labour hours were required per unit.
    Therefore my revised gross profit was £326000
    Did anybody else get this or am i completely wrong?

    Fixed overheads should have remained £120000
    Selling & distribution costs and admin costs should also have remained the same as still only 9000 units sold?
  • GuruGuru Feels At Home Registered Posts: 33
    Hunnie wrote: »
    I seem to remember the £414000
    I calculated the additional costs to be:
    Materials 1000 x £60 = £60000
    Labour 1000 x 2 x £14 = £28000
    *It said in the question based on 2 labour hours so I assumed this was how many labour hours were required per unit.
    Therefore my revised gross profit was £326000
    Did anybody else get this or am i completely wrong?

    Fixed overheads should have remained £120000
    Selling & distribution costs and admin costs should also have remained the same as still only 9000 units sold?


    I *think* you've re-doubled the labour - I thought it was £7 per hour.

    And you're right about sales/dist cost not changing, although the pedant in me can't avoid pointing out that they shouldn't change irrespective of the sales level...
  • pinkpink Feels At Home Registered Posts: 35
    Hunnie wrote: »
    I seem to remember the £414000
    I calculated the additional costs to be:
    Materials 1000 x £60 = £60000
    Labour 1000 x 2 x £14 = £28000
    *It said in the question based on 2 labour hours so I assumed this was how many labour hours were required per unit.
    Therefore my revised gross profit was £326000
    Did anybody else get this or am i completely wrong?

    Fixed overheads should have remained £120000
    Selling & distribution costs and admin costs should also have remained the same as still only 9000 units sold?


    Hi hunnie, I got £28,000 for labour as well, i wish i had left the fixed overheads alone though!!!
  • pinkpink Feels At Home Registered Posts: 35
    im not 100% sure, but I think that the reason I used £14 per labour hour because that is what I calculated in the performance indicators earlier in the question

    Scenario 1 was £14 and scenario 2 £35
  • HunnieHunnie Feels At Home Registered Posts: 41
    Guru wrote: »
    I *think* you've re-doubled the labour - I thought it was £7 per hour.

    And you're right about sales/dist cost not changing, although the pedant in me can't avoid pointing out that they shouldn't change irrespective of the sales level...

    I do remember the £7 rate now you've said that......i'm sure i still multiplied by 2 though *confused*

    I thought that selling and distribution costs would relate to the number of units sold and distributed but then these papers do play with your mind :S
  • pinkpink Feels At Home Registered Posts: 35
    was £7 what they had given us for task 2.3?
  • HunnieHunnie Feels At Home Registered Posts: 41
    Guru wrote: »
    I *think* you've re-doubled the labour - I thought it was £7 per hour.

    And you're right about sales/dist cost not changing, although the pedant in me can't avoid pointing out that they shouldn't change irrespective of the sales level...
    pink wrote: »
    was £7 what they had given us for task 2.3?

    That may be where the £7 came from...my mind is so boggled now that i'm not sure! Speaking of task 2.3 though, i discounted the £30000 running costs by the discount factors but should i have discounted my labour savings also i.e the £105000?
    Another thing i wasn't sure on (as i hadn't looked at discount factors since last year) is should i have started discounting from year 0 i.e. the cost would remain £30000 or should you start discounting from year 1?
  • pinkpink Feels At Home Registered Posts: 35
    I know me too, frustrated I cant remember everything!!

    Looking at the other posts i think in section 1 the labour rate was £7 but then for task 2.1 and 2.2 in the preformance indicators we had to calculate £14.... so thats why used the £14 instead of £7 giving me the £28,000 but who knows, no doubt I am completely worng!!!

    I thought I got a saving of about £108,000 but then the £70,000 that people keep mentioning rings a bell too?! think i probably just did every calculation possible hoping one of them would be right lol!!

    Im sure that i started from year 1 to rather than year 0 ..
  • HunnieHunnie Feels At Home Registered Posts: 41
    pink wrote: »
    I know me too, frustrated I cant remember everything!!

    Looking at the other posts i think in section 1 the labour rate was £7 but then for task 2.1 and 2.2 in the preformance indicators we had to calculate £14.... so thats why used the £14 instead of £7 giving me the £28,000 but who knows, no doubt I am completely worng!!!

    I thought I got a saving of about £108,000 but then the £70,000 that people keep mentioning rings a bell too?! think i probably just did every calculation possible hoping one of them would be right lol!!

    Im sure that i started from year 1 to rather than year 0 ..

    I'm just hoping that i can scrape through on the basis that I provided workings for everything and tried to explain things the best i could! Hopefully they will give me extra marks for setting my answers out neatly haha! On that note, i'm going to bed...need a fresh head to continue PCR revision - fun fun!
  • CJECJE New Member Registered Posts: 9
    Has anyone completed the feedback questionaire on the Students page under lastest news... they use this when marking so it may be a good idea for people to fill this out... they may let us off with the last question ... maybe !?
  • TracieTracie Feels At Home Registered Posts: 25
    pink wrote: »
    Re task 2.2
    I remember that the operating profit given for the first scenario was £414,000
    but I think after calculating all of the adjustments I got my new operating profit to something like £386,700 ish but im not sure.... can anyone remember what they got?
    I got £340,000 and my New Net Assets were £1940,000. Also calculated ROCE as thought that was what they were asking for and got 17.5%

    Did anyone else ge these figures??
  • Jess26182Jess26182 Just Joined Registered Posts: 3
    Thought the exam was a bit easier than June 08 one, still v wordy!! Last question threw me, found out from a friend that it has NOTHING to do with PEV. It is in fact an ECR question from Intermediate - what use is that testing us on a PEV paper, if we haven't done ECR???! AAT were completely unfair there........Had a bash at it, guessed that one....:001_unsure:
  • Polymer xxPolymer xx New Member Registered Posts: 13
    hey guys

    can anyone remember whether the hours in section 2 were reduced from 5 to three (i.e. giving a saving of 2 hours) or from 5 to 2 (i.e. giving a saving of three hours). I was under the impression it was the former, but looking at everyones comments here it seems I may have misread the question!!

    cheers!!
  • OlaOla Just Joined Registered Posts: 4
    ^Joe wrote: »
    Our Tutor did briefly cover it this year :)



    Total= (budgeted Materials / units) x actual units, then use this against the actual cost, IIRC, £3350.
    You need to adjust for the units. Mine did work.

    Aww no!! i got the two split variances right but i must have been having a blonde moment when i did the total cost variance as i just took the two total material figures away from each other to get the variance. NOOOO! well hopefully i did enough in other areas to cover this. :-(
  • OlaOla Just Joined Registered Posts: 4
    Polymer xx wrote: »
    hey guys

    can anyone remember whether the hours in section 2 were reduced from 5 to three (i.e. giving a saving of 2 hours) or from 5 to 2 (i.e. giving a saving of three hours). I was under the impression it was the former, but looking at everyones comments here it seems I may have misread the question!!

    cheers!!

    It was from 5 to 2 i think with a 3 hour saving
  • nikdan123nikdan123 New Member Registered Posts: 11
    I Have totally failed this exam...messed up last question cant remember answering the one about how it affects the p&l. oh well resit in june for me! x
  • HunnieHunnie Feels At Home Registered Posts: 41
    nikdan123 wrote: »
    I Have totally failed this exam...messed up last question cant remember answering the one about how it affects the p&l. oh well resit in june for me! x

    Did anybody get the following?
    Material price variance (glass) £21000A
    Material usage variance £0
    Labour rate variance £0
    Labour efficiency variance £1400F
    FOH expenditure variance £1000A
    FOH efficiency variance £6000F
    OAR £30

    How did you explain the £0 variances?
  • nikdan123nikdan123 New Member Registered Posts: 11
    i had nill variance for the material usage but then for some stupid reason i changed it. i think i got the same on others though! whats that OAR?
  • HunnieHunnie Feels At Home Registered Posts: 41
    nikdan123 wrote: »
    i had nill variance for the material usage but then for some stupid reason i changed it. i think i got the same on others though! whats that OAR?

    Overhead absorption rate = budgeted overheads / budgeted labour hours£120000 / 4000 = £30
  • nikdan123nikdan123 New Member Registered Posts: 11
    i didnt know it asked for that either. oh man! never mind am not that bothered ha nothing i can do about it now
  • Suzie1982Suzie1982 Just Joined Registered Posts: 4
    I got completely thrown on variances - the zero ones confused me but ratios were ok thought there was more writing though for this one

    had a go at section 2 didnt d anything on depreciation - will prob have to take again.
  • GuruGuru Feels At Home Registered Posts: 33
    Hunnie wrote: »

    How did you explain the £0 variances?

    Well, it shows that the budget was accurate, ie that wages really were £7 per hour, and materials really were 5Kg/unit (or whatever).
  • confused!!confused!! Well-Known Registered Posts: 130
    Tracie wrote: »
    I got £340,000 and my New Net Assets were £1940,000. Also calculated ROCE as thought that was what they were asking for and got 17.5%

    Did anyone else ge these figures??

    I got £312,700, but i used £14 to work out the labour and also adjusted the overheads (wrong i know!)
  • lorklork Feels At Home Registered Posts: 97
    Guru wrote: »
    I see lots of people upset about this, but shouldn't we be able to deal with the material we've previously learned? Would we have any justification in complaining if we were asked to complete a VAt return? I understand the surprise, I just don't think we're entitled to complain - we're only a few months away from a professional qualification....

    Whilst I completely agree that we should be able to deal with previous material, surely this is the whole point of doing 'modular' exams, ie, learn a subject, sit an exam. I'm sure if students expected to be tested on absolutely anything learned over the past three years, we would all revise everything we've ever learned, rather than concentrate solely on the current unit. I still think it was unfair to throw it in at the end but I believe the same thing happened in June with gearing and interest cover ratios.
  • lorklork Feels At Home Registered Posts: 97
    pink wrote: »
    im not 100% sure, but I think that the reason I used £14 per labour hour because that is what I calculated in the performance indicators earlier in the question

    Scenario 1 was £14 and scenario 2 £35

    Wasn't that £14 and £35 per unit, not per hour in the performance indicators?
  • NBBNBB Well-Known Registered Posts: 125
    lork wrote: »
    Wasn't that £14 and £35 per unit, not per hour in the performance indicators?


    Yes Lork, It was per unit not per hour.
  • King of the MountainsKing of the Mountains Feels At Home Registered Posts: 66
    lork wrote: »
    Whilst I completely agree that we should be able to deal with previous material, surely this is the whole point of doing 'modular' exams, ie, learn a subject, sit an exam. I'm sure if students expected to be tested on absolutely anything learned over the past three years, we would all revise everything we've ever learned, rather than concentrate solely on the current unit. I still think it was unfair to throw it in at the end but I believe the same thing happened in June with gearing and interest cover ratios.

    I completely agree, however GURU I complete VAT Returns on a regular basis and have done for the past 10 years but unfortunately I don't do discounted lifecycle costing. Now I've had time to think about the question it is a relativley simple calculation that we are probably all more than capable of.
  • belleirebelleire New Member Registered Posts: 5
    PEV has left me deflated!

    Hi,

    I studied so hard for PEV as it's my final exam thought I would be skipping out of the exam yesterday but NO the last question 2.3 left me feeling very unsure as to whether I could have passed or not!

    Can someone please put me out of my misery I multiplied the maintenance costs by each year of the figures given 0.9 and the rest can't remember what they were to give me a lower figure than I started with added all them together with the cost of the machinery and minused the sale proceeds amount?

    Basically can some one answer whether the discounted amount is added or taken away from the total? Does it make the value greater or less? Confused.com:huh:
  • tauq786xtauq786x Feels At Home Registered Posts: 35
    I think that if most people eff'd up on 2.3 then they unlikely to make us fail coz of it

    Section 1 was easy... but i made alot of silly mistakes on Section 2 and with 2.3 being messed looks like im gonna resit in june!
  • iainiowiainiow Settling In Nicely Registered Posts: 20
    how do people remember exact figures from the exam yesterday :laugh: i can remember walking in, doing the paper and walking out - 24 hours later i remember nothing of what i wrote down lol!!!!!!!!!!:thumbup:
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