MAC Today

Moodley

Hello everyone,

Agree it was not a bad paper, but im mad with myself coz i spend sooo much time on budget forcasts, variances, ratios ..the big sections that i was actually stuck on the index & time series questions and so im dissappointed in myself for not giving it some time. silly me!

Anyone remember any answers in the indexation section???, pls share it so i can check if you do, so i can compare my answers!!!

Doubting if i will actually have enought marks to pass section 1, was happy with section 2.

well at least its over.... can have our lives back...

good luck if your writing any other papers..

MrPolea

Hey...

It took me the full 3hrs and 15 to complete - is the bit your talking about the increase in platic for the Kwick..?

Crazy Chick

was this the bit where you had to give the percentage increase for 2 things? and compare if they had kept cost lower than the index? i put that he was correct and was receiveing better prices

Crazy Chick

i struggled with the lifestyle costing question. Was it a feasable purchase? I put no but i think i didnt multiply the hours saved by the years of the machine being owned!!! can anyone remember this question and remind me...?

i only noticed 10mins from end but at least i had shown some workings so should get some marks i hope

Tinkerbell007

Thats what I put too... I think the price increase was something like 10% and the index was 14 something%??? Not quite sure what the figures we had to use were....

Crazy Chick

what about the labour budget? the question said they paid the workers a certain amount of hours regardless each month. did anyone use this figure in their budget? as month 1 and 3 worked out less for me

Tinkerbell007

Hi

I said it wasn't a feasable purchase as the costs for maintenance outweighed the costs saved on the labour hours....

Crazy Chick

me too can you remember your figures? i just remember at first multipying the cost by 4 years like an idiot, changed that at last min but how were the hours saved quoted.? i remember it being 50 then 200 but was this per month year i cant remember

Tinkerbell007

I think the machine could produce 200 items an hour rather than 50... for the lifecycle costing I took the machine cost, added 4 years overhead costs and then deducted the amount they received on disposal.. don't think I included the hours and labour cost in it though... :001_unsure:

Richard

I said that it was viable - I based my decision on it saving the company
800,000 over 4 years

The current labour is 1,000,000 a year, therefore, 4,000,000 over 4 years.

The new machine would cost 250,000 a year in labour, and the same in maintenance, so my lifecycle cost was:

Purchase..................1,500,000
Maintenance.............1,000,000
Labour.....................1,000,000
Disposal....................(300,000)
TOTAL.....................3,200,000

Crazy Chick

i remember that bit, i think i am mixing up the questions...can you remind me?
the was one bit where i did the same as you - the price and then the maint minus the scrap value.
was the hours bit a diff question.
i worked out the diff between 50 + 200 times labour rate i think

Tinkerbell007

Aaggh!! I forgot to add in the labour cost!! Included everything else though so will hopefully still pick up some marks!

I didn't like the target cost question one bit!

MrPolea

i two got the same answer but worded it for the year and not the life of the machine
labour was 1,000,000 i diveded that by four as you were getting four times as much units on the new machine, bring labour down to 250,000 then the machine maintenance was 250k and the amount depreciated each month was 300k givin a total of £800k saving the firm £200k each month - anyone agree???

Crazy Chick

was the 300k not the scrap value? not depreciation

Tinkerbell007

I did.....

Cost of the machine
Plus maintenance per year x 4 years
Less the amount received on disposal

I didn't include labour costs anywhere though...

Tinkerbell007

I thought £300,000 was the scrap value too......

Crazy Chick

me too..oh well..i then compared the new labour price/rate against this

MrPolea

i finished with th £300k scrap.....

cost of machine was £1,500,000 so i deducted the 1st £300k as the scrap price leaving with 1.2m then i divided that over 4years to give £300k a year depreciation....

Crazy Chick

oh i see...i didnt even think to depreciate it,,oh well..

any comments on the labour budget question in sect 1 i mentioned earlier anyone?

Tinkerbell007

I never even thought to use depreciation!! Oh well... too late now!!! :001_smile:

Not sure which question you mean about the labour hours?

How did you do the target cost question?

MrPolea

yeah i used the 160 in my listing thing

i think it was something like they worked an average of 5600 hrs a month in total and that was also the minimum paid hours each worked 160 x 35 = 5600 so i put that they had to pay, it wasnt untill month three that they required to work that amount and then do overtime aswell!!

how did you handle the next part...?

Crazy Chick

sorry Tinkerbell remind me of this question..

the labour budget was the part if i remember right where there were the budget for month 1 2 and 3 and there was the labour element , i think there was something about the staff get paid for a certain amount of hours and i got that they needed less in month 1 and 3 so used this figure as it was what they were paid as a minimum...

Tinkerbell007

Oh I remember that question now!

I got that it was only month 3 where they had to do overtime as well

Crazy Chick

Hi MrPolea
I did the same but i had overtime in month 2 as they had to keep some closing stock as a percentage of the month 3 figure, month 3 then had some opening stock from month 2 so they were under the 5600 again...at least we both noticed that but...

Tinkerbell007

The target cost one was: define target cost and then there was a question about an estimated selling price of £10 and a margin of 20%, think you had a to calculate the variable costs..?

Have serious brain fuzz this afternoon! :001_smile:

Richard

Did you have a closing stock at the end of month 3. I worked out what the forecasted sales were for month 4 and included 10% of this as a closing stock, which meant overtime was paid in month 2 and 3.

Crazy Chick

oh yes i got the price as £8.00
but it was a bit confusing as the other element was fixed cost so is this normally added in? i think i added the fixed element - however that much was and then divided it out

Crazy Chick

no because i didnt know the sales figure for month 4, but i think your are right..

Tinkerbell007

Hi Richard I worked out month 4 sales as well but only had overtime in the month 3

MrPolea

did you guys get the next part to that question where they machines dint work and then they had to do more the next month and also extra to compensate the month after...?

not sure i got this right but i did that they...

sales requied 6,500,000 (5,500,000 plus the extra 1,000,000 )
less Opening balance 0.00
add closing balance: 605,000 (something like that)
Production total 7,105,0000

and then the next month was

Sales required £6,050,000
less opening bal: 605,000
add closing bal: 665,5000 (10% of the month 4's total)
Production 6,110,500

was that right...?

Tinkerbell007

I went with the fact that they said sales increased by 10% each month and presumed that still applied to future months