PEV Answers for Section 1

Khurram Taj

Hi All

I have got answer for PEV section 1, could anybody tell me, are they right?

Task 1.1

5000 Kg
5000 Kg
100 Sq Metre
£15000
£7500
£1000
£6500

B

£800 A
£2250F
£600F
£1875 A
£550F
£150A

C

Standard cost of actual material for 9500 one KG Packs= £22325
Actual Cost of actual material for 9500 one KG Packs = £21750

D

Fixed Overhead Expenditure Varience = £1000 Adverse

Fixed Overhead Volume Varience = £ 1325A


Task 1.2


Some detail report writing

Task 1.3

a) £1400 £1500 £1600
b) £1500 £1400 £1750
C) £1.50 Kg £1.4 Kg 1.75 Kg index numbers 66.6 71.42 57.14

Task 1.4

A) Production engineer talking about idel standard

Which is not possible in this situation because in a week long trail production per labour was 800 jars and if somthing happen like machine broke down, disruption etc production was only 600 jars.

Labour may think 600 jars target easy to achieve and it could be lost of labour time and afact their effiiciency and if they achieved 800 jars target than it could be a favourable capacity. so company sould make practical standar so that it does not effact labour efficiency and capacity and profitable for company s interst.

messedup89

how you get answers?

AATmunkee

Khurram Taj wrote: »

Hi All

I have got answer for PEV section 1

Task 1.1

5000 Kg
5000 Kg
100 Sq Metre
£15000
£7500
£1000
£6500

B

£800 A
£2250F
£600F
£1875 A
£550F
£150A

C

Standard cost of actual material for 9500 one KG Packs= £22325
Actual Cost of actual material for 9500 one KG Packs = £21750

D

Fixed Overhead Expenditure Varience = £1000 Adverse

Fixed Overhead Volume Varience = £ 1325A


Task 1.2


Some detail report writing

Task 1.3

a) £1400 £1500 £1600
b) £1500 £1400 £1750
C) £1.50 Kg £1.4 Kg 1.75 Kg index numbers 66.6 71.42 57.14

Task 1.4

A) Production engineer talking about idel standard

Which is not possible in this situation because in a week long trail production per labour was 800 jars and if somthing happen like machine broke down, disruption etc production was only 600 jars.

Labour may think 600 jars target easy to achieve and it could be lost of labour time and afact their effiiciency and if they achieved 800 jars target than it could be a favourable capacity. so company sould make practical standar so that it does not effact labour efficiency and capacity and profitable for company s interst.

The only thing here i dont agree with is Task 1.3b as they gave you new seasonal variations to work to.

exam panic

b Answer

800A
3000F
1500A
600F
100A
550F
This is the right answer because it will balance

AATmunkee

exam panic wrote: »

800A
3000F
1500A
600F
100A
550F
This is the right answer because it will balance

Mine balanced too with the answers above

exam panic

hi

1750 is the differrence

---

That will be balance on material alone 30000-6500(budget fixed overhead)=23500
29250-7500(fixed overhead)= 21750 and the difference this 2 is 1750

exam panic

your difference is 575 how come it blalance

Because difference betwen is 1750

AATmunkee

exam panic wrote: »

Because difference betwen is 1750

i def got 575.. its because u did 5000 x £3 and 5000 x £1.5 where as i did 4750kg X £3 and so on.

exam panic

Tell me how you balance

can you tell me how you balance material alone you have to work out from 10000 not 9500 , 500 scrap don't have value

The Master

i got 325a for the volume variance - should it have been 1325a?

AATmunkee

I did 4750kgs x 3
4750kgs x 1.50
95sqmtrs x £15

That totals to £22325. Standard material cost for 9500 units

The Master

Khurram Taj wrote: »

Hi All

I have got answer for PEV section 1, could anybody tell me, are they right?

Task 1.1

5000 Kg
5000 Kg
100 Sq Metre
£15000
£7500
£1000
£6500

B

£800 A
£2250F
£600F
£1875 A
£550F
£150A

C

Standard cost of actual material for 9500 one KG Packs= £22325
Actual Cost of actual material for 9500 one KG Packs = £21750

D

Fixed Overhead Expenditure Varience = £1000 Adverse

Fixed Overhead Volume Varience = £ 1325A


Task 1.2


Some detail report writing

Task 1.3

a) £1400 £1500 £1600
b) £1500 £1400 £1750
C) £1.50 Kg £1.4 Kg 1.75 Kg index numbers 66.6 71.42 57.14

Task 1.4

A) Production engineer talking about idel standard

Which is not possible in this situation because in a week long trail production per labour was 800 jars and if somthing happen like machine broke down, disruption etc production was only 600 jars.

Labour may think 600 jars target easy to achieve and it could be lost of labour time and afact their effiiciency and if they achieved 800 jars target than it could be a favourable capacity. so company sould make practical standar so that it does not effact labour efficiency and capacity and profitable for company s interst.

all except the volume variance where i got 323a

AATmunkee

I got 325a too...

Esme

Surely the index numbers are wrong.. they should have all been above 100??

jow774

I thought that with the index, but the lower index was the only one which would give the current figures values
anywhere near the march price.

Esme

You thought what I said or agree with the earlier posts?

How can you guys remember every answer you put!!!?

jow774

Sorry I mean thought index should be over 100. But I thought they wanted to compare the recent price to the March 09 one so I went for the below 100 figure.

Ally3004

Hi Yes I go these answers but could balance my opperating statement for some reason? i found it realy hard and didnt have time to finish!

jow774

I found that there was loads and loads to write and it did same longer than the other papers which made it hard going towards the end. I cant revise for PCR coz my hand wont write anymore!

jow774

Esme wrote: »

You thought what I said or agree with the earlier posts?

How can you guys remember every answer you put!!!?

Just checked in my books and I think your right esme, that the index should be over 100

Rachey

jow774 wrote: »

Just checked in my books and I think your right esme, that the index should be over 100

I got something like 180, 170 and 205 (approx, may be 160 or something though!! My memory isnt too great)

rach40

Question on forecasting prices

Can anyone tell me how the question on forecasting future prices should of been answered ? What was underlying cost of the first three months and the seasonal changes ? I did not have a clue ?

sdv

rach40 wrote: »

Can anyone tell me how the question on forecasting future prices should of been answered ? What was underlying cost of the first three months and the seasonal changes ? I did not have a clue ?

Month.......Cost.....Trend.....Seasonal Variation
Sept 09.....1200.....1400.....-200
Oct 09......1600.....1500......100
Nov 09......1500.....1600....-100

The trend is a monthly increase of £100

Dec 09.....1800.....1700......100
Jan10......1900......1800....-100
Feb10......2050.....1900......150


Index

March09......1000.....100%.....100
Dec09.........1800.....180%.....180.....(1800/1000 x 100)
Jan09.........1900......190%.....190.....(1900/1000 x 100)
Feb02........2050.......205%.....205.....(2050/1000 X 100)

COMA

sdv wrote: »

Month.......Cost.....Trend.....Seasonal Variation
Sept 09.....1200.....1400.....-200
Oct 09......1600.....1500......100
Nov 09......1500.....1600....-100

The trend is a monthly increase of £100

Dec 09.....1800.....1700......100
Jan10......1900......1800....-100
Feb10......2050.....1900......150


Index

March09......1000.....100%.....100
Dec09.........1800.....180%.....180.....(1800/1000 x 100)
Jan09.........1900......190%.....190.....(1900/1000 x 100)
Feb02........2050.......205%.....205.....(2050/1000 X 100)

I hope you're right because that's exactly how I did it