MAC more helish than PEV/PCR?

Londina MAAT, AAT Licensed Accountant Posts: 814
this is my feeling, I've been doing MAC and PEV/PCR papers and the one for MAC are more difficult (have a look per example Dec 2007, section 1 the microchip)!
oh, I'm giving up, completely lost hope to pass this unit :crying:

I know I will fail next Monday.


  • jay cutler
    jay cutler Registered Posts: 57 💫 🐯 💫
    I tried the Dec 2007 PEV past paper and that was the most difficult question I've faced yet for a section 1 on variances. The usage and purchase factor on materials was really important to get the hang of. The rest of the paper was straightforward though. Good luck with MAC!
  • Londina
    Londina MAAT, AAT Licensed Accountant Posts: 814
    take the difficult section of PEV with the difficult one of PCR, you get a MAC paper, it's a combined of those two, that's why I found it so difficult...

    Anyway, the DEC 2007 task on section 1 I was talking about is this one:

    You are employed as an Accounting Technician at YSP Games Ltd, a company that designs and produces games. The games are produced for use on either a Ybox or a Siny games console and both are sold directly to retailers. YSP has several divisions including Division Q. Division Q has designed a new game and this has recently been launched for the Christmas 2007 period.

    Division Q uses a budgetary control system and a colleague had prepared the budget for the period September to November 2007. The spreadsheet containing the budget is corrupt and the November 2007 figures cannot be read. You have been asked to recreate the budget based
    upon the following information.

    • The Ybox version is sold to retailers for £8 per game.
    • The Siny version is sold to retailers for £6 per game.

    Forecast Sales (Units) Ybox Siny
    • Month 3, November 2007 150,000 400,000
    • Month 4, December 2007 160,000 400,000


    • Each game requires the following:
    - one DVD-ROM which costs £500 per 1,000 units
    - a plastic package which costs £0.05 each
    - a special security microchip costing £2
    • The company operates a just-in-time stock purchasing system, so holds no stock of raw materials at the month end.

    Stocks of finished goods of games
    • The policy is to keep sufficient closing stock to meet 5 days’ production in the following month unless otherwise stated.
    • Budgeted closing stock at the end of October was 37,500 Ybox games and 100,000 Siny games.
    • The closing stock at the end of December is forecast to be zero for both games.
    • Division Q owns 5 machines, all of which are depreciated at a cost of £200,000 per month.
    • Each machine can operate for a maximum of two 7.5 hour shifts a day for 20 days a month.
    • Each machine can produce 120,000 games per month when operating at full capacity.
    • Each game requires the same time in production.
    • Other fixed production overheads are £40,000 per month per machine.
    • Fixed production overheads are absorbed on the basis of budgeted machine hours.
    • Each machine requires 5 operators who each cost £20 per hour. Operators work a flexible hours system which means they are paid only for the number of hours required in production, which is the same as the machine hours.
    • Each month has 20 working days.

    Task 1.1
    Prepare the following information for November 2007 ONLY:

    (a) the production budget for Ybox and Siny games
    (b) the microchip purchases budget in units and £s
    (c) the number of games produced
    (i) per machine hour
    (ii) per labour hour
    (d) the fixed production overhead budget
    (e) the direct labour hours budget in hours and £s
    (f) the budgeted overhead absorption rate per machine hour and per game.

  • brett316
    brett316 Registered Posts: 48 💫 🐯 💫
    That looks no different to PEV/PCR ......
  • Londina
    Londina MAAT, AAT Licensed Accountant Posts: 814
    brett316 wrote: »
    That looks no different to PEV/PCR ......

    I know, but at least you don't sit PEV/PCR in the same paper...:001_unsure:
  • brett316
    brett316 Registered Posts: 48 💫 🐯 💫
    True that. I wasnt saying it was nice either way!
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