PEV Task 2.2

jay cutler

PEV Task 2.2 - Jun 06 paper.

It's the question regarding the Voltair contract. Just seen the anser to a) which mentions a figure of £8M/10000 for "full production cost per turbine ". Where does the 8M come from ???:confused1:

This question is very confusing. Especially the part on avoidable and unavoidable costs.

taskey

looking at it quickly (pev june 08) i think they get the 8m from the answers in 2.1 (a)

Scenario 1

Direct materials cost per unit £300.00
Direct labour cost per unit £200.00
Fixed production cost per unit £300.00

= £800 X 10,000 = £8M

i think that is right? i will have a look at the next bit and see what i get

Hope that helps - if i am wrong, i am sure someone will be along shortly.

Tracy

jay cutler

I just read the question more carefully. You are correct and the answer was in fact written on the question itself the "Total cost of Sales" figures from the P+L accounts were used. Still very confusing. I read the question as though we were meant to work with £650x10000 and then whether to add the "avoidable" and/or "unavoidable" costs. My problem with PEV is reading the questions right. Every PEV paper is so confusing:cursing:

taskey

are you only sitting pev? i am sitting pcr and pev and i am dreading them both. i do the past exam papers and think "fab did that, easy!!!" then i check my answers, one sill mistake and i carry it on through the paper.

oh well not long to go just a bit more time to squeeze more in

Tracy