PEV - how did you all find it....?

135

Comments

  • kjg-kj
    kjg-kj Registered Posts: 68 Regular contributor ⭐
    That makes me feel happier. Im not saying we should or shouldn't have put the running costs of the lease option in, I didn't but someone else did and now I'm doubting myself, u know how it is!

    At least if lots of us did the same that is a good thing!!!
  • garry_coombs
    garry_coombs Registered Posts: 108 Dedicated contributor 🦉
    tauq786x wrote: »
    What did every1 get for the standard cost card for 10000units?????? i got some messed up figure like £27700 :(
    and i messd up da 2nd discount factor question :@ hope pass mark is low this year!

    I got £16,900.

    I think 15k on fixed assets, 1 tonne of soap, not sure about anything else on it though
  • russlola
    russlola Registered Posts: 9 New contributor 🐸
  • tonitowle
    tonitowle Registered Posts: 32 Regular contributor ⭐
    Wasnt there two material price/usage variances?
    I cant remeber my figures for the plastic bottle price/usage variance though
  • garry_coombs
    garry_coombs Registered Posts: 108 Dedicated contributor 🦉
    Nagra wrote: »
    My reconciliation did not balance in section 1, I got that Standard was £30,030 but had a variance of £666 (just had to be the devil's number didn't it, lol.) Couldn't find where I went wrong though - any chance people can remember the variances for section 1??

    I got:

    Price 1400F
    Usage 300A
    Labour Rate 525F
    Labour Efficiency 220A
    O/H Expenditure 500A
    O/H Volume 200F

    What have I got wrong there??


    There only seems to be one material variance there, there were 2 material price and 2 material usage variances.
  • kjg-kj
    kjg-kj Registered Posts: 68 Regular contributor ⭐
    Nagra wrote: »
    My reconciliation did not balance in section 1, I got that Standard was £30,030 but had a variance of £666 (just had to be the devil's number didn't it, lol.) Couldn't find where I went wrong though - any chance people can remember the variances for section 1??

    I got:

    Price 1400F
    Usage 300A
    Labour Rate 525F
    Labour Efficiency 220A
    O/H Expenditure 500A
    O/H Volume 200F

    What have I got wrong there??

    The reconcilliation included 2 other Variances which were given to you in the paper already calculated possibly shampoo cost & usage. They were the other 2 u needed to balance. (Can't remember the figures tho)
  • chrim
    chrim Registered Posts: 18 New contributor 🐸
    did you put the given variances in
  • diamondavid
    diamondavid Registered Posts: 33 Regular contributor ⭐
    wasnt the volume 700F
  • Mathew_Hill
    Mathew_Hill Registered Posts: 23 New contributor 🐸
    I got £16,900 too.

    Soap...1 tonne @ £1200 = £1200
    Plastic 200sq m @ £1.50 = £300
    Labour 10 hrs @ £40 = £400
    Fixed overheads = £15,000

    TOTAL = £16,900
  • Hayley
    Hayley Registered Posts: 23 New contributor 🐸
    Nagra wrote: »
    My reconciliation did not balance in section 1, I got that Standard was £30,030 but had a variance of £666 (just had to be the devil's number didn't it, lol.) Couldn't find where I went wrong though - any chance people can remember the variances for section 1??

    I got:

    Price 1400F
    Usage 300A
    Labour Rate 525F
    Labour Efficiency 220A
    O/H Expenditure 500A
    O/H Volume 200F

    What have I got wrong there??


    Hi, I got the same variances as you other than the overhead volume, I got £700F

    £7,000 / 10,000 units = £0.70/unit x 11,000 units £7,700 less budgeted (£7,000) gave the £700F variance
  • PAMDILL
    PAMDILL Registered Posts: 721 Epic contributor 🐘
    I did wonder about the running costs, was tempted to put a comment on paper about assuming lease was full maintaining lease.

    Got reconciliation to balance and £2.04 million profit increase. and 80% increase.

    The bit that through me was the other two considerations on NPC, I put whether demand stayed the same, if not could the machine be used for other products if bought or could the leased one be sent back. Other consideration was if lease was fixed cost then if inflation rocketed the running costs of bought machine might wipe out the savings over the lease.

    What two other considerations did everyone else put?
  • diamondavid
    diamondavid Registered Posts: 33 Regular contributor ⭐
    I got £16,900 too.

    Soap...1 tonne @ £1200 = £1200
    Plastic 200sq m @ £1.50 = £300
    Labour 10 hrs @ £40 = £400
    Fixed overheads = £15,000

    TOTAL = £16,900

    i got all right, otherthan soap i put 12k instead ARGH
  • Flipflop
    Flipflop Registered Posts: 67 Regular contributor ⭐
    You have missed the two variances they gave you in the paper
  • Nagra
    Nagra Registered Posts: 28 Regular contributor ⭐
    Hayley wrote: »
    Hi, I got the same variances as you other than the overhead volume, I got £700F

    £7,000 / 10,000 units = £0.70/unit x 11,000 units £7,700 less budgeted (£7,000) gave the £700F variance

    Yea I think I totally messed that one up!! But got the majority of the rest correct, I hope I pass, dont wana re-sit it again!!
  • tonitowle
    tonitowle Registered Posts: 32 Regular contributor ⭐
    Two considerations..
    I put how would we finance the machine?
    & would it still be useful in 5 years time/would we still be making the same product (although im unsure if this is right)
  • Hayley
    Hayley Registered Posts: 23 New contributor 🐸
    PAMDILL wrote: »
    I did wonder about the running costs, was tempted to put a comment on paper about assuming lease was full maintaining lease.

    Got reconciliation to balance and £2.04 million profit increase. and 80% increase.

    The bit that through me was the other two considerations on NPC, I put whether demand stayed the same, if not could the machine be used for other products if bought or could the leased one be sent back. Other consideration was if lease was fixed cost then if inflation rocketed the running costs of bought machine might wipe out the savings over the lease.

    What two other considerations did everyone else put?


    I put one as cashflow, with the purchase option being a big costs, and whether the company can afford it. Got a bit stuck then so waffled about depreciation and its affect on profit vs lease cost.
  • clazaridis
    clazaridis Registered Posts: 30 Regular contributor ⭐
    For the indexes I used the unadjusted figures, but i did the right workings would I still get marks??
  • russlola
    russlola Registered Posts: 9 New contributor 🐸
    I got £16,900 too.

    Soap...1 tonne @ £1200 = £1200
    Plastic 200sq m @ £1.50 = £300
    Labour 10 hrs @ £40 = £400
    Fixed overheads = £15,000

    TOTAL = £16,900

    Why fixed costs are £15,000?
  • taskey
    taskey Registered Posts: 1,800 Beyond epic contributor 🧙‍♂️
    for the 2 considerations i put that

    if rented then all breakdowns, updates etc would be covered by the contract

    and

    once the 5 years were up, if purchased the monies made on the sale of the machinery could go back into the business to purchase further machinery???

    not sure of those answers now though

    Tracy
  • kjg-kj
    kjg-kj Registered Posts: 68 Regular contributor ⭐
    Because the overheads were £150,000 based on 100,000 units but we only made 10,000
  • tonitowle
    tonitowle Registered Posts: 32 Regular contributor ⭐
    Wasnt it £150000 fixed costs for 100,000 units, so therefore 10,000 units = £15,000
  • diamondavid
    diamondavid Registered Posts: 33 Regular contributor ⭐
    it was 150,000 for 100,000 soap, but we only need to make 10,000 so take a nought out
  • kjg-kj
    kjg-kj Registered Posts: 68 Regular contributor ⭐
    My considerations were

    if operating lease it anything that went wrong would be settled by the lessor,

    and also that we need to consider the tax implications of purchase ie expenses to P & L or capital allowances etc.
  • tauq786x
    tauq786x Registered Posts: 35 Regular contributor ⭐
    i messed up by putting soap as £12000 instead of £1200
  • diamondavid
    diamondavid Registered Posts: 33 Regular contributor ⭐
    tauq786x wrote: »
    i messed up by putting soap as £12000 instead of £1200

    me 22222222222
  • russlola
    russlola Registered Posts: 9 New contributor 🐸
    Oh I remember that now!! I done most of thye cost card right, but I did 1000kg x £1200!! Which gave me the figure of £1200000 and I added that to the rest! Which gave me the mad total!! How silly is that!!!!! :lol:

    Looks like I will be re-sitting :blushing:
  • diamondavid
    diamondavid Registered Posts: 33 Regular contributor ⭐
    i think i got the return on net asset, and fixed asset turnover wrong, cos i only remmebr its operating profit/net asset and there wasnt operating profit, and i did fixed asset/turnover STUP[ID ME
  • diamondavid
    diamondavid Registered Posts: 33 Regular contributor ⭐
    And i completely messed up task 2.3
  • taskey
    taskey Registered Posts: 1,800 Beyond epic contributor 🧙‍♂️
    i think i got the return on net asset, and fixed asset turnover wrong, cos i only remmebr its operating profit/net asset and there wasnt operating profit, and i did fixed asset/turnover STUP[ID ME

    they are the 2 i am worried about also. as soon as i was in the exam room i went through the paper and marked the equations i would need, then when it came to it i was stumped.

    Tracy
  • kjg-kj
    kjg-kj Registered Posts: 68 Regular contributor ⭐
    Well I did asset turnover as turnover/net assets x100% (I didn;t realise it was FIXED asset turnover & it was 'times' not %). Neva mind
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