Budgeting CBA exam

Abbie28

Hello can anyone explain how they calculated 1.6a?

emma89

is it the question where you have to complete the analysis of the raw mat and quality control etc?

Abbie28

yes i think thats the one.

Abbie28

yes thats the one i tried repling but this silly laptop is messing about i worked out most of it only 3rd answer i got lost.... where how many units you can make dependant on the supllier ...?

also 1.2f the materials..... blimey i have no idea.... then completing the operating statemnbet is another thing especially if i am getting it right...

emma89

Well ill tell you what i got, but to be honest i don't know if im right! I'm not to good at explaining things either!

52500 units in normal time therefore 2500 hours of overtime needed. i worked it out by

60000 units x 20mins / 60 mins = 20000 hours needed

10 staff x 1750 hours a yr = 17500 normal hours

200000-17500 = 2500 overtime

17500 x 60 /20 = 52500

Am i on the right question???????

emma89

60000 x 2.5kg =150000
can only get 100000kg from supplier so need an extra 50000 from open market

100000kg from supplier /2.5kg needed = 40000 can be produced

quality control can test 4200units a month x 12 to get a year = 50400

60000 made - 50400 available to be tested = 9600 units need alternative arrangements.

Abbie28

yerp thats right from your figures so then how to do work out that part the answer the raw material contract will provide enough material to make .......... units ?

emma89

Please can you type in the production budget for 1.2f because my papers are all mixed up so just want to check im looking at the correct one!

Abbie28

thank you didnt realised you posted before me sorry thank you

Abbie28

ok

sorry it 1.3 online

info given
opening stock 4000
production 30000
subtotal 34000
sales 29000
closing stock 5000

now table you have to work out is

materials kg £
purchase 2100 2000
subtotal 15500 27125
used in production ? ?
closing ? ?

each unit produced uses 0.55 kg of material.

closing stock will be valued at the budgeted purchase price.

emma89

I have a different paper but ill try!

production 30000 x 0.55kg = 16500 used in production kg
27125 /15500 = £1.75 per unit x 16500units = £28875

Abbie28

thank you ow right sorry for confusion didnt realise they did different papers, thank you yes i get it wooooooooo! thank you....

emma89

Then minus from your subtotal (online its 17600) from your production (16500)= 1100

The budgeted purchase price is purchase £ / Purchase kg.

I think you may have missed some figures out on your production budget

emma89

Whens your exam?

Abbie28

Thank you i might have.... im just so nervous im like forgettting everything ive learnt

tommorrow yours ....?

emma89

Budgeting Wednesday and Financial performance tomorrow. Let me know how your budgeting went you may be able to calm me down haha

Abbie28

haha ill try.... well ill let you know how it went and hopefully you reassure you all well.... youll have to let me know how your other exam goes... Goodluck.... Thank you for your help

emma89

Goodluck

Abbie28

good luck today... i got to wait another week to wait