PEV Task 2.2

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jay cutler
jay cutler Registered Posts: 57 Regular contributor ⭐
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.

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  • taskey
    taskey Registered Posts: 1,800 Beyond epic contributor 🧙‍♂️
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    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
    jay cutler Registered Posts: 57 Regular contributor ⭐
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    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
    taskey Registered Posts: 1,800 Beyond epic contributor 🧙‍♂️
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    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
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