PEV Exam
Comments
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I thought it was a fair paper, arrived very flustered as the traffic was terrrible and nearly missed it altogether, section 1 stumbled me at first but soon realised what they wanted (hopefully) spent a while secong guessing myself on the standard cost card, on section two managed to forget the asset turnover calc but hopefully the working was ok, I was slightly unsure about the lifecycle last question if it was 5% for all subsequent years or 5% compound, all in all fingers crossed!!!!0
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For the lifecycle question added on the 5% then added on 5% to that answer etc hope that was right,and it wasn't just 5% on top of the year 1 cost for each of the 5 years!0
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I also got improved gross profit margin too on the second scenario0
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I may have calculated the 5% wrong then it was slightly unclear to me, did the lease option at least work out cheaper0
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I used compound 5%0
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i was completely blown away! I have NEVER done a practice paper where you have to work out the budgeted cost!! used to having all the actuals and standar costs at hand! This is the only (please correct me if im wrong) paper that has ever done this!! Just hope i did enough the get me a pass!! Luckily i revised for the last question and didnt do too bad (I hope) role of feb i say :-/0
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yeah the lease was cheaper with my calculations.0
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tomburns1987 wrote: »How did everyone find the PEV exam?
I thought it was a fair paper, no major surprises made a mess of last question I think and not sure whether I worked cost card out right quite happy with variance explanations and gross profit explanations areas I fell down on last time roll on Feb-11!0 -
I took the whole 3 hrs 15 mins to do the paper! it took me a while to get my head around calculating the standard costs but I feel okay with the variances. I also got 3120, think there was also a 4800 and 740 somewhere. Sure I calculated the capacity variance okay but was unsure about the efficiency variance but I came up with something!. Didnt enjoy the report writing, there seemed to be a lot of that and I forgot what the asset turnover was. With the leasing, I added 5% onto the wages year on year but it was not an exact amount which made me worry! The leasing option worked out best by 40 odd thousand I think. Fingers crossed for Feb and lets hope i can get in for thur as snow is on its way here0
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Sorry to hark on about this but surely with the labour costs (for revised scenario 2) being increased to that of scenario 1 (from £0.30p to £0.80p)wouldn't that reduce the revised GPM? I think I misread what we had to do!0
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I am glad you said that as from memory i am sure my gp was reduced. I am remembering a 7% but can not remember if it was this or not!Sorry to hark on about this but surely with the labour costs (for revised scenario 2) being increased to that of scenario 1 (from £0.30p to £0.80p)wouldn't that reduce the revised GPM? I think I misread what we had to do!0 -
Any one remember how much the saving was on the leasing - approx?0
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Sorry to hark on about this but surely with the labour costs (for revised scenario 2) being increased to that of scenario 1 (from £0.30p to £0.80p)wouldn't that reduce the revised GPM? I think I misread what we had to do!
I think this is what has confused a few people on knowing which fixed costs had changed. I changed the production fixed Overhead costs from £1,500,000 to £500,000 which outweighed the change in the labour increase and caused an increased the gp%.
Anyone else do it like this?0 -
did you take the origional cost as period 0 then wages over 5 years increasing by 5% each year, this did not give you a round number each time, then on year 5 reduce it by the income received. Each year was altered with the indexing. Leasing was periods 1 to 5 and then indexing each year. I just dont recall it being that amount. Dont know why I am worrying about it now!can you remember how much cheaper it was?[/QUO
about 68308 :-)0 -
I also changed the production overhead but did wonder whether to do all the fixed overheads at one point until re reading the email.
Wasnt quite sure what the question about the fixed costs was getting at and waffled on about if you made less there would be higher fixed costs etc.
Also I rewrote the P&L account to get the revised GPM and NPM, is that right or should I just have rejigged a few other things???0 -
Yeah I rewrote the p&l0
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i wrote the p&l out again, I bet the examiners report will state that lots of candidates wasted time!!tomburns1987 wrote: »Yeah I rewrote the p&l
I think from memory my revised NP was £550,0000 -
did you take the origional cost as period 0 then wages over 5 years increasing by 5% each year, this did not give you a round number each time, then on year 5 reduce it by the income received. Each year was altered with the indexing. Leasing was periods 1 to 5 and then indexing each year. I just dont recall it being that amount. Dont know why I am worrying about it now!
yes i did that and you you round up or down accordingly.
thats why they tell you to show your workings so if you do get the wrong answer at least they can see how you got there and you will get some marks for getting half the formula right!!
im sure you will be fine0 -
in the June 09 exam the leased costs were also paid annually in advance - they used years 0-4 though, which is what I did today after haggling with myself0
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That's what I did too.
I just explained each of the variances using the reasons they gave us, such as the inferior material creating more wastage so giving an adverse usage variance, yet it was cheaper so gave a favourable price variance etc. And I think the fixed overhead expense variance was due to the monthly depreciation of the upgrade? - also responsible for the improved labour efficiency.
They did seem to give us the reasons in the question though, this always makes me suspicious!
My calculations showed wastage by using the new recycled stuff but when it was compared to the original material that had increased in price the result was the same -so they could have bought the old stuff at the new price and it would have made no difference. Does that make sense?
Less labour was paid but it makes it look like they were paying #12 per hour - when in actual fact 2000 was due to redundancies and the balance was wages which were paid at the usual rate of 10 per hour.
The upgrade split over 60 months or five years was the fixed overhead expense variance .
I also added the fact that savings would be made as the 6000 saving offset by the fixed overhead variance would improve profit margins.
Swampy0 -
PEV Exam
Guys...
I didn't finish in time so I am really worried
I was told my time was up...looked around and I was the only one left...LOL. I must have been in "the zone".
I am a little worried about how I have done as I didn't answer ALL questions...just have to wait until February!0 -
i've been reading through the comments & feeling much better about the PEV paper now. I came out feeling very stressed more to do with exam conditions than the paper itself.throughout the whole exam there were building work going on in the building which didnt help my concentration at all. I hope i dont fail because of it0
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having read the comments I see i made stupid mistakes on the last two tasks so will probably fail section two, grrr nevermind0
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I practiced on all papers, and yes this was the first paper that they did not give you the budgeted figures. My head sank in my hands, and then i calmed down. As the paper unfolded i got more confident about my figures. What price per unit did you get for the bar after working out the cost card?sasperella wrote: »i was completely blown away! I have NEVER done a practice paper where you have to work out the budgeted cost!! used to having all the actuals and standar costs at hand! This is the only (please correct me if im wrong) paper that has ever done this!! Just hope i did enough the get me a pass!! Luckily i revised for the last question and didnt do too bad (I hope) role of feb i say :-/0 -
I think I got something like £1.16?0
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I had a reduced GPM to but cannot remember what it was, can you remember how much the revised net profit was. Did not like the written bit of this task but felt confident at the end as this is a resit for me.Sorry to hark on about this but surely with the labour costs (for revised scenario 2) being increased to that of scenario 1 (from £0.30p to £0.80p)wouldn't that reduce the revised GPM? I think I misread what we had to do!0 -
stellababe wrote: »I practiced on all papers, and yes this was the first paper that they did not give you the budgeted figures. My head sank in my hands, and then i calmed down. As the paper unfolded i got more confident about my figures. What price per unit did you get for the bar after working out the cost card?
My unit price per bar was £1.16. Did anyone else get this??0
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