Effeniciy & Capacty Ratios MAC
A-Vic
Registered Posts: 6,970 Beyond epic contributor 🧙♂️
Trying to get my head around these for budget controls
Output in units 257,300
Budget Output 250,000
Hours Worked 24.400
Standard time for each unit of production 6 minutes
i have effiency at 105.45%
and capcity at 97.60%
what are these trying to tell me? Sorry just for my understanding i know probs seems straightforward
Thanks in advance
Vic
Output in units 257,300
Budget Output 250,000
Hours Worked 24.400
Standard time for each unit of production 6 minutes
i have effiency at 105.45%
and capcity at 97.60%
what are these trying to tell me? Sorry just for my understanding i know probs seems straightforward
Thanks in advance
Vic
0
Comments
-
Trying to get my head around these for budget controls
Output in units 257,300
Budget Output 250,000
Hours Worked 24.400
Standard time for each unit of production 6 minutes
i have effiency at 105.45%
and capcity at 97.60%
what are these trying to tell me? Sorry just for my understanding i know probs seems straightforward
Thanks in advance
Vic
Gah, I hated MAC. I dimly remember it but assuming the question isn't asking you to calculate budgeted / standard costs etc and only asking you to comment on the percentages:
Efficiency over 100% would imply that things are either being made quicker, or cheaper
Capacity under 100% implies it can produce more.
You'd have to calculate the actuals to add more relevant commentary to the above.
Hope that helps. It probably doesn't. I just feel really sorry for anyone doing MAC!0 -
If I remember correct, based on your percentages, what it says is they did the work more efficiently, but they didn't use the full capacity of the month.
Aka they took less time per unit, than planned (24,400 instead of 25,730 hours for the actual production)
However, they didn't use the full capacity. They only worked 24,400 hours instead of the planned 25,000.
Does that make sense?
Cheers,
Rinske0 -
Thanks monsoon its just for my understanding of what the ratios are telling us, am doing chapter 11 of BPP Book i see myself why they left MAC till the second part of the college year really struggling0
-
If I remember correct, based on your percentages, what it says is they did the work more efficiently, but they didn't use the full capacity of the month.
Aka they took less time per unit, than planned (24,400 instead of 25,730 hours for the actual production)
However, they didn't use the full capacity. They only worked 24,400 hours instead of the planned 25,000.
Does that make sense?
Cheers,
Rinske
Great thanks just what i was after0 -
God i hated this subject lol - good luck !0
-
think am gonna need it0
-
think am gonna need it
Once you've got it, you've got it. It just took ages for it to fall into place for me.
Depending on the way your brain works, I found it useful to nail the different things into formulae (budgeted cost = a x b, standard cost = b x c, acutal cost = a x c [note this isn't right but the gist is] and then work out what a, b, and c are from looking at the question. Then you can approach the question feeling relatively confident (!) that you will at least get the calculations right because you can just drop the given numbers into the relevant formula. The more you do it the more you will feel ok with commentary too.
idk if that helps or not....!
It took me ages to work out the difference bewteen budget and standard.0 -
Thanks monsoon just feels like am never gonna get these but keep plodding on0
-
Rona
can i check is it ?
OP/Net Assets (after deduction of deprication?)0 -
Hi Guys,
It sounds MAC is quite a handy subject, I can't wait to get started but I haven't recieved my purchases yet. I wasn't pleased at all, I been told it will be arrived by Friday but no luck .
I'm hoping will be, in my doorstep tommorrow and hopefully I can relate this thread and much more information will keep on coming that would be helpful.
.0 -
Lyn
I think it is a good subject area too.
As far as the two ratios featured here, I have often found them more useful than the equivalent fixed overhead variances. When feeding back to managers, they can often relate to a % (or equivalent decimal) rather than a sum of money value.
And the interpretation A-Vic asked for has already been provided by Rinske and Monsoon.Sandy
sandy@sandyhood.com
www.sandyhood.com0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 325 NEW! Qualifications 2022
- 160 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 95 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 273 VAT
- 92 Software
- 274 Tax
- 138 Bookkeeping
- 7.2K General accounting discussion
- 202 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership