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## Comments

41I 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?

33I *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...

35Hi hunnie, I got £28,000 for labour as well, i wish i had left the fixed overheads alone though!!!

35Scenario 1 was £14 and scenario 2 £35

41I 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

3541That 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?

35Looking 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 ..

41I'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!

925Did anyone else ge these figures??

313can 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!!

4Aww 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. :-(

4It was from 5 to 2 i think with a 3 hour saving

1141Did 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?

1141Overhead absorption rate = budgeted overheads / budgeted labour hours£120000 / 4000 = £30

114had a go at section 2 didnt d anything on depreciation - will prob have to take again.

33Well, it shows that the budget was accurate, ie that wages really were £7 per hour, and materials really were 5Kg/unit (or whatever).

130I got £312,700, but i used £14 to work out the labour and also adjusted the overheads (wrong i know!)

97Whilst 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

anythinglearned over the past three years, we would all reviseeverythingwe'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.97Wasn't that £14 and £35 per unit, not per hour in the performance indicators?

125Yes Lork, It was per unit not per hour.

66I completely agree, however

GURUI 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.5Hi,

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:

35Section 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!

20