PCR June 2007 1.2 iV & Dec 07 1.2c

kjg-kj

Is it just me or was this question really badly worded!?

We worked out our scenario on 1.1, then it gave us the extra information saying that we could employ 10 extra employees to reduce overtime. Then it asked us to calculate a revised operating statement for the Luxuruy model.

I did this based on using the extra 10 employees. However the answer still puts in the original staff number and the figure for that on because it is cheaper. However the question does not specify to calculate the budgeted operating statement for the cheapest option.

Am I missing something???

And whilst I am ranting, the 1.2 section of Dec 07 is another recalculation based upon higher sales than expected etc so recalculate the budgets. When calculating the Labour budget I used the information used in section 1.1 because we had been told nothing additional about labour at that point...

In section 1.3 it tells us the 10 staff cannot be expected to work more that 50 hours overtime each. However for section 1.2c the official answers limits the overtime worked to the 50 hours each. How is this fair if we had not even been told that information until further down the paper!!!!

Anyone else make sense of this?

karenv

Hi
Yes you are right.
I did exactly the same!
I have noticed that the wording and layout of several papers very confusing.
It is very unfair.