June 2008 MAC

A-Vic

Task 1.3 b am getting confused by the holiday hours in august and ho the answer has been worked out please can anyone clear it for me

Thanks in advance


Vic

jilt

I'll give it try tomorrow and see if I'm any wiser.

A-Vic

Also in the June 2009 task 2.2 redraft of profit and loss why has the fixed advertising budget increased ? have you done this ? either am missing something but there is no info why it would have changed???

SandyHood

Very simple

The answer is inconsistent
Either you treat the holiday pay cost as part of direct labour (which happens in the model answer to part 1.1) and you then continue with that approach (as happens in one of the 1.3 answers ~ the alternative I think) or you treat holiday pay as a separate non-production cost and do not include it in any direct labour calculations.

I won't have access to email Fri Sat or Sun, so I'll send you my answer shortly

A-Vic

thanks Jill

A-Vic

Thanks sandy it just has me baffled at the mo

SandyHood

A-Vic wrote: »

Also in the June 2009 task 2.2 redraft of profit and loss why has the fixed advertising budget increased ? have you done this ? either am missing something but there is no info why it would have changed???

You don't have to redraft the P&L
Just a breakdown of the extra profit (Increased contribution less increased fixed costs)

I made it £2.64 millions

A-Vic

when compairing my answers it had an increase in advertising cost which made my net profit amount out:-

) Answer based on taking the information on page 8 as per month

LapX Adjustments LapX revised
Sales units of LapX Extreme 45,000 5,000 50,000
£000 £000
Sales revenue 22,500 2,500 25,000
Cost of sales 0
Direct materials 6,750 750 7,500
Direct labour 3,600 400 4,000
Fixed overhead 7,500 0 7,500
Total cost of sales 17,850 1,150 19,000
Gross profit 4,650 1,350 6,000
Fixed selling and distribution costs 900 0 900
Fixed administration costs 500 0 500
Fixed advertising costs 1,500 1,000 2,500
Net profit 1,750 350 2,100

Gross profit margin = 6,000/25,000 = 24%
Net profit margin = 2,100/25,000 = 8.4%
Return on net assets = 2,100/13000 = 16.15% or
2,100/(15,000 – 2,000 +(2,100-1750) = 2,100/13,350 = 15.73%


these are the answers given

SandyHood

Sorry my comment wasn't an MAC paper. My mistake.

Do you think the bullet point
• The cost of sponsorship will be £1 million

could be the extra advertising cost?

Did you put the sponsorship in as a separate amount?

A-Vic

SandyHood wrote: »

Sorry my comment wasn't an MAC paper. My mistake.

Do you think the bullet point
• The cost of sponsorship will be £1 million

could be the extra advertising cost?

Did you put the sponsorship in as a separate amount?

I didnt but going to have another go tonight and re-read think i got over tired and couldnt see where the extra cost came in.

Thanks for the email

jilt

Right I've done section one and everything was okay except:

1.2 Couldn't answer, need to learn lifecycle costing, not even read the bit in the book yet, it's about 1/2 a page though (??)

1.3 a
Total enquiries processed July 250,000 August 141,000 - yes got that correct
Reviews required July 50,000 August 28,200 - yes got that correct
Total number of enquiries and reviews July 290,000 August 151,200 err no I got:
Total number of enquiries and reviews July 300,000 August 169,200

Am I missing something here or is the answer incorrect?

This made all my other answers for 1.3 incorrect

Holly

This question is driving me mad!

Holly

I asked an AAT tutor at the weekend who seemed to think that the way we did question 1.3 (with the 300000 enquiries/reviews) would have gained us the marks.

C2XVT

Jilt

This question is slightly strange, when you work out the usually with the prodction plan, the working would be

Sales
+C/S
-O/S
= Production Plan

But with this paper it is calculated differently

Sales
-C/S
+O/S
= Production Plan

This is because "enquiries are carried over" rather than how we would conventionally deal with stock? Does that make sense?

I've just picked up this from the chief assesors report which might explain it better

"A very common mistake was the treatment of the enquiries brought forward and carried forward. This is possibly explained by the comparison with the calculation of required production when the business knows the sales, opening stock and closing stock. Candidates took the enquiries received, added the closing enquiries and deducted the opening enquiries. The correct logic would be to take the enquiries received in the month, add the opening enquiries and deduct the closing enquiries to arrive at the number of enquiries processed in the month. "

C2XVT

A-Vic wrote: »

Task 1.3 b am getting confused by the holiday hours in august and ho the answer has been worked out please can anyone clear it for me

Thanks in advance


Vic

The answer in the answer sheet seems a bit off a mess. I've talked this through with my tutors and they understood that the calculations are in consistent.

In 1.1 they have taken into considertation the reduction in available hours due to the holiday; But have not done this for 1.3.

When the tutor gave us this paper, he revised the answer sheet to show the holiday hours being taken into account in 1.3

Steve Collings, your thoughts on this would be great