Dis Makers Ltd - Unit 8 practice exam 4

noodles

I am so stuck with this practice exam, has anyone else done this from their Osborne book, maybe I can bounce some ideas off them....

SandyHood

I imagine that you are broadly confident with the unit, but that there is something in the wording here that has troubled you rather than absolutely everything about it.
I'd be happy to try to rephrase or help with specific aspects.
If you wish, you could scan the part of the question and email it to me.

noodles

two departments pressing and finishing

Standard cost per machine hour - pressing department only

blank cd 800 x £0.20 £160
labour 8 labour hrs x £7 £56
Fixed o/h £200
Standard cost of £416

Pressing -
Actual cost of cd issued to prod £20790
Actual price for each cd £0.21
Actual no fault free cd produced 96000
Budget labour hrs 880 hrs
Actual labour hrs worked 980 hrs
Actual cost of labour £7252

Factory -
Budget total factory fixed £33000
Budget total labour hrs 1320
Actual total factory fixed £34500

Both budget and actual fixed o/h are app between pressing and finishing on budgeted labour hours.

noodles

I have a series of normal sort of questions to answer and generally I am okay with these but as you say I think it is the style it is put in that is confusing me.
I am trying to compare the budget to actual first so that I have a starting point and where budget has 800 disks per hr, I can not work out how many actual would be, I know it is 20790 / 0.21 but how many labour hrs per hr does it take actually. I am getting myself in a state over this question.
thank you so much for any help and direction.
nicky

noodles

Actual questions I have to answer
Actual no of cd's issued to production
Budgeted machine hrs of the dept
Standard no of cd's produced per labour hr
standard labour hrs produced
budgeted fixed o/h of pressing dept
actual fixed of the pressing dept
standard fixed rate per labour hr
actual cost of actual prod including fixed o/h
standard cost of actual prod, including fixed o/h.

I dont want to just have the answers as that will not benefit me, put direction would be appreciated.

exam panic

very difficult this one I did mock exam last year and I got 6 out of 100

SandyHood

The parts of the task in this order without answers if possible.

1.1
(a)

1. Standard no of cd's produced per labour hr
   You know that you can make 800 CDs in one machine hour and that each machine hour requires 8 labour hours.
   
2. Budgeted machine hrs of the dept
3. budgeted fixed o/h of pressing dept
4. actual fixed of the pressing dept
5. standard fixed overhead rate per labour hr
   You know the budgeted total factory overhead and the budgeted total factory labour hours
6. standard labour hrs produced
   From your earlier calculation you know that the standard is that there are 100 CDs being produced per labour hour
   The question tells you how many CDs were actually produced
   Divide the actual number of CDs produced by the standard number per labour hour to give you the standard hours produced
   You would normally work out standard hours produced by units per standard hour x units produced. If you did it this way around, you would get the same answer
7. Actual no of cd's issued to production
   The question tells you the actual cost of the blank CDs issued to production and it also tells you the actual price paid for each blank compact disc.
   So this is no different to a question telling you the total value of material purchased and the price per kg, you use this to find the total kgs purchased.
8. actual cost of actual prod including fixed o/h
   The question gives you the material and labour cost and in part (iv) worked out the fixed overheads attributed to the pressing dept
9. standard cost of actual prod, including fixed o/h.
   The question gives you the standard cost of 800. It also tells you the actual number manufactured

noodles

Standard no of cd's produced per labour hr
800/8
Budgeted machine hrs of the dept
880/8
budgeted fixed o/h of pressing dept
£33000/1320 = £25 x 880
actual fixed of the pressing dept
34500/1320 £26.14 x 980

SandyHood

I hope this helps, in many ways you might be saying:
" Ughh, I could have done that anyway." If so, I'd be quite pleased. In many ways competence is being able to do variance questions in diferent formats, so keep at it. Being able to learn a technique where the question remains the same with different numbers isn't as competent.

noodles

Thank you for all your help, I was all ready to stop this test paper for good but with your help above i will try during the week to get to the bottom of this test, I will not let it beat me!. I do hope that the actual exam isn't like this question, I was confident until I decided to attempt this test. As you say, it is important to understand it rather than learn it so for that reason I will complete the paper. x