MAC PEV and PCR Revision Game
Comments
-
Jill
Capacity is the capability to produce and for us that is the [size=+1]hours worked[/size]
Every time the [size=+1]actual hours worked are more than the budgeted hours[/size] we have more capacity than the budget expected us to, and [size=+1] every time the variance is favourable[/size]
In the same way, as in the Rinske Ltd exercise, where the hours worked are less than the budgeted hours we have less capacity than budget so must have an adverse variance.
Forgot the question, so a last minute addition
What do you do about usage variance if there are 3 different raw materials?
I have tried to find the answer to this, couldn't find anything in either of my MAC books, did find one site on the internet last night that mentioned more than one materials but didn't understand it. Could you pust me out of my misery please Sandy, is it part of the syllabus?0 -
It is in the syllabus
Treat each material separately
So if you have a victoria sponge cake business with flour, butter, eggs and sugar; then each ingredient has a usage variance and a price variance.
Do not think you have to combine them into a single material variance.
Next question:
New staff were recruited and have started to work on a particular product. What type of labour efficiency variancewould you expect (or be prepared for)?Sandy
sandy@sandyhood.com
www.sandyhood.com0 -
It is in the syllabus
Treat each material separately
So if you have a victoria sponge cake business with flour, butter, eggs and sugar; then each ingredient has a usage variance and a price variance.
Do not think you have to combine them into a single material variance.
Next question:
New staff were recruited and have started to work on a particular product. What type of labour efficiency variancewould you expect (or be prepared for)?
An adverse one until they mastered the technique and were as efficient as the already established staff.
Q - What is secondary data?0 -
-
Anyone?
I've already done PEV/PCR and to be honest tried to wipe it from my mind....... haha.
But to keep this thread alive i'll have a bash at this...
Random sampling is a sampling process where every item has an equal chance of being selected. This process pobably gives the best results as products will be taken from different batches at different times.
Q What is the difference between labour efficiency variance and labour rate variance?0 -
I've already done PEV/PCR and to be honest tried to wipe it from my mind....... haha.
But to keep this thread alive i'll have a bash at this...
Random sampling is a sampling process where every item has an equal chance of being selected. This process pobably gives the best results as products will be taken from different batches at different times.
Q What is the difference between labour efficiency variance the other type of labour variance that i've forgotten the name of..... suggestions welcome lol....?
Rate???0 -
Thought I would have ago but there is no question.
so what is TQM?0 -
Thought I would have ago but there is no question.
so what is TQM?
Jesus, you had to pick one of the two chapters I havent even looked at lol.
I honestly don't think I'm gonna be able to do this. When I check some of the model answers when doing past papers I can't understand what the hell they've put, all the variances bear no resemblance to the way I've made notes and tried to learn them. My good friend A-Vic tells me there are a mere 5 different ways of doing them, god help us!!
Getting back to your question its total quality management, and basically quality management must be applied in all activities of the business not just production.
Is that any good? Please say yes it will mean I've actually learned something.0 -
-
Jesus, you had to pick one of the two chapters I havent even looked at lol.
I honestly don't think I'm gonna be able to do this. When I check some of the model answers when doing past papers I can't understand what the hell they've put, all the variances bear no resemblance to the way I've made notes and tried to learn them. My good friend A-Vic tells me there are a mere 5 different ways of doing them, god help us!!
Getting back to your question its total quality management, and basically quality management must be applied in all activities of the business not just production.
Is that any good? Please say yes it will mean I've actually learned something.
yes and we worked ours out differently and came up with the same stuff
0 -
This thread is dying
Q What is ment by Bench Marking0 -
-
Its a budget that is continually updated with compaired firgures from prevous quaters or something like that.
What is the Labour effienciy variance and what is it used for?
rolling budget - it's continually updated to cover the next 12 month period.
A - measures speed at which workforce works comparing how many hours it should have taken to produce to actual hours taken to produce all at standard rate
Q - how do you measure interst cover?0 -
the number of times that interest payable can be paid from the operating profit
Operating Profit = number of times the interest is covered by the profit
Interest Payable
You have 120,000 units in the original budget where Maintenance is budgeted to cost £5,400
You have 170,000 units in the revised budget where Maintenance is budgeted to cost £7,200
You are told that Maintenance is a stepped cost and that each step enables production up to 50,000 units
How much is the cost of one step?Sandy
sandy@sandyhood.com
www.sandyhood.com0 -
the number of times that interest payable can be paid from the operating profit
Operating Profit = number of times the interest is covered by the profit
Interest Payable
You have 120,000 units in the original budget where Maintenance is budgeted to cost £5,400
You have 170,000 units in the revised budget where Maintenance is budgeted to cost £7,200
You are told that Maintenance is a stepped cost and that each step enables production up to 50,000 units
How much is the cost of one step?
1800 per stepped cost
What is NPV and what does it signify0 -
Hi All, this is my firs shot at these questions. I've just registered here today and think this is a great way to revise. So here goes:
NPV is net present value. It is the sum of the discounted future income or expenses to today's value. It takes into account inflation and the opportunity cost of investing the money into this project as opposed to something else.
Q: What is zero based budgeting?0 -
Hi All, this is my firs shot at these questions. I've just registered here today and think this is a great way to revise. So here goes:
NPV is net present value. It is the sum of the discounted future income or expenses to today's value. It takes into account inflation and the opportunity cost of investing the money into this project as opposed to something else.
Q: What is zero based budgeting?
Hey sama welcome
A: Zero based budgeting is is a cost justifaction technique that does not look previous years budget but start from strach.
Q: What are the advantages of ZBB0 -
A: ZBB - encourages innovation because it does not favour ongoing projects to new initiatives.
- It doesn't allow for budgetary slacks like incremental budgeting.
- Combines budgeting with planning.
Q: what are the disadvantages of ZBB?
This is so much more fun then doing it alone.0 -
A: It is very time consuming
Q: If you know that an original budget has forecast sales and production of 120,000 units and a budgeted overtime premium of £160
And a revised budget has forecast sales and production of 190,000 units and a budgeted overtime premium of £2,960
What is the maximum production before overtime payments are needed?Sandy
sandy@sandyhood.com
www.sandyhood.com0 -
A: It is very time consuming
Q: If you know that an original budget has forecast sales and production of 120,000 units and a budgeted overtime premium of £160
And a revised budget has forecast sales and production of 190,000 units and a budgeted overtime premium of £2,960
What is the maximum production before overtime payments are needed?
Any clues totally stuck
0 -
-
25? so (120,000 (25) = 119,975 no cant be right anyone else?
Q if you times the efficiency ratio by the capacity ratio what does it equal?
where did you get 25 from?
as per rules, you haven't answered correctly........
Can a new question be asked before correctly solving the question at hand?
use hi-low technique
...............190,000................2960
less..........120,000.................160
from the above you should have the variable element only. ie overtime premium0 -
No Sorry you lost me
use hi-low technique
...............190,000................2960
less..........120,000.................160
.................70,000................2800
from the above you should have the variable element only. ie overtime premium
to produce 70,000 units an overtime premium of £2800 has to be paid
therefore overtime premiu per unit = 2,800 / 70 000 = £0.04
therefore £160 represents (160 / 0.04) = 4000 units
maximum production before overtime payments are needed = 120 000 - 4 000 = 116 000
Double check
190 000 less 116 000 = 74 000 units times £0.04 = £2960 ovvertime
A Vic's Question: if you times the efficiency ratio by the capacity ratio what does it equal?0 -
thanks for the explantion but now i relise am stuffed0
-
thanks for the explantion but now i relise am stuffed
Don't worry about it.
You will be fine!
In the AAT Exams you won't have to interpret the data like the above question, but it's best to get it wrong now then in exams.
I have always learnt from my mistakes and I bet with all that hard work that you put in , you won't make the same mistake0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 324 NEW! Qualifications 2022
- 160 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 94 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
- 201 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