PCR paper Dec 10

angie1

I didnt get to sit this paper due to the snow, duz anyone know what the correct treatment of the buffer stock should be? as you had to buy in batches of 5000 the closing stock was more than the 2500 they wanted to keep, so do you just ignore tho 2500 and use the closing stock you work out?

Also Capital budget? I cant find anything in my books for this, anyone know how to do this?

noodles

I did the paper and i had no idea about the buffer and the capital budget - it was a horrible paper.

angie1

Yea it is confusing, im now sitting mine Tuesday, the operating statement at the end of 1.2 took me ages only because of the production figures, on theres the closing stock is just the opening stock + purchases less the amount they used, no mention of buffer stock, so thats what i did on mine, have no idea if thats right tho!

SandyHood

I've done 1.1 and 1.2 and have read through the paper.

I was pleased to see capital budget in there, this has been in the standards for years and it is only now that a question has appeared.
I'd expected to see it in section 2, but it makes sense to put it with the plannining questions.

I think it was on the cards to come up, and if your book didn't address it then tell the publisher.
It has been in my revision class content for the last 2 exams - ever since the examiner published an article including it.
(I didn't go through it at Kingsway Hall this year as the class had requested more time for operating budget questions, but the details were in the handouts).
I think this question (Task 1.4) was soft in comparison to others on the paper, so you should be mopping up marks with it.

I would expect that the snow closure exam paper will also test this topic, so the chilly wind may have helped those of you who had not studied up to now.

angie1

Hi Sandy, any chance you could post your answers up for 1.2 so i could check them with mine? With the Capital budget would you just put:

Purchase 2 Vehicles cost 240000
Less sales proceeds 2 Vehicles 20000
NBV of vehicles 16000
Net cash expenditure 236000

My books say what a Capital budget is but not how to do the actual computation.

SandyHood

No
But if you email me I'll send you my answer
I have just finished task 1

Don't they need 3 vehicles
They've got 7, 2 are due for replacement, but their budget needs 8
(Unless you've done the 40,000 tonnes answer)

So buy 3 x £120,000
and take the proceeds of the disposal of the 2 old ones 2 x £10,000

noodles

it seems very wrong as when you are a distance learner you rely on working from the books and when the topic does not come up in the book or in the pre tests your provider sets you then what hope have you got - winge over!

angie1

Oh i think i have missed the point of the question then! I took it as they just wanted to replace 2. The more i look at this paper the more i think i dont know, am starting to panic, i will e-mail you, if you could give me the answers when you have done them it would be a great help thank you, least i can see what i have done right.

SandyHood

nscuffell wrote: »

it seems very wrong as when you are a distance learner you rely on working from the books and when the topic does not come up in the book or in the pre tests your provider sets you then what hope have you got - winge over!

You have a point. You could also bear in mind that if self-study was the same as taught classes then there would be no need for lecturers such as me. After all, a taught course is more expensive.
You can save money, and study in a way that suits both your work and your other commitments if you are working through books. My class have me working on the course in addition to their individual studies and I can scan the various sources that give them clues about the future direction of exams.

rybka

Pcr

hey
im sitting mine tomorrow too. Just had a look at the december 2010 paper and have to admit its confusing. First of all i found task 1.1 a bit tricky as increase in volume 40,000 + 12,000=52,000*£190(£200-£10)=£9,880,000
Delivery I dis pro rata £1,600,000/40,000*52,000=£2,080,000
TOTAL INCOME £11,960,000

then variable cost increase with volume incerease so 52,000-40,000=12,000/40,000*100=30% increase
variable cost £7,560,000*30%+=£9,828,000

total income £11,960,000
less variable £9,828,000
contribution £2,132,000 (£92,000 better of)
less fixed £984,135
PROFIT £1,147,865

Task 1.2
Sales 52,000
less o/stock (6,095)
plus c/stock 2,500

Purchases Net 48,405
wastage 5/95 2,548
purchases gross 50,953 round up to 55,000 (as need to purchase is 5,000 shipments)
less purchases (55,000)
equals 4047
c/stock 2,500
Total C/stock 6547 tonnes

how did you calculate it???

rybka

how did you calculate c/stock value per tonne?
I did o/stock as it was 6,095 tonnes £914,000
Purchases 55,000/5,000*£750,000= £8,250,000
total 61,095 tonnes Total £9,164,000/61,095=£149.995 per tonne

C/stock 6,547*£149.995=£982,024
total used £9,164,000-£982,024=£8,181,976

litasangel316

Hello,

I'm a distance learner and there is no mention of how a Capital budget should be laid out in my books. Does anyone know? and if so could they please post the layout?

thanks

SandyHood

I feel I must repeat the comments of examiners and chief assessors. You are taking a gamble if you rely exclusively on your book. The standards are available from the AAT website. The standards are what the course is made up of. The standards are what the examiner examines.

I've uploaded a paragraph from the examiner plus some practice questions that I have used.

Just think though about the value of lecturers, and at least consider a revision class before your next exams.



And finally, please may I encourage you to support this charity.
My son is Mark Mayer. He has a form of Cerebral Palsy called Worster Drought Syndrome. WDS affects speech and eating. He is also Hard of Hearing and has to use Hearing aids. He has a wheelchair that has to use as he can not walk long distances.
Mark has become chairperson of the Worster Drought Syndrome Support Group. This organisation supports children and adults with WDS.
Each year the group hold a family day where the children, parents and people who have WDS can meet up and share their experiences. The day gives a great support to all the WDS suffers but relies on donations to enable it to go ahead.
If you find my answers help, or wish to show appreciation of any support I've given you, please consider making a donation to the Worster Drought Syndrome Support Group; http://www.justgiving.com/WDS-SG

angie1

Hi duz anyone know if the flexed budget on task 2.2 of this paper should be based on 6 or 7 vehicles, I have used 7 as that was the actual results, not sure thats right tho?

sdeabill

Hi Sandy,

id it possable to email the answers you get for the PCR paper, this is my 3 time, and i have my fingers crossed, keep running out of time, so i managed to finish the paper this time, not sure how i did, i know that some of the answerd on here re section 1 is ok. but its section 2, so not sure if i need to go back to college in jan to learn it again before resiting. so your answers will rearly help make my mind up as to if i need to go back to college.

you were a great help last time you sent me answers.

thank you

litasangel316

Thanks Sandy that will be a huge help!!

rybka

angie1 wrote: »

Hi duz anyone know if the flexed budget on task 2.2 of this paper should be based on 6 or 7 vehicles, I have used 7 as that was the actual results, not sure thats right tho?

I think its 6 vehicles as this is a completely new task and it says clearly stepped costs vary according to the number of vehicles, each vehicle can make up to 175 deliveries so 1,000/175=5.7= 6 vehicles

SandyHood

I have completed the D10 paper for PCR and can send you a copy if you email me.
Please let me know if you spot any errors.

And please make a donation to this good cause.

My son is Mark Mayer.
He has a form of Cerebral Palsy called Worster Drought Syndrome. WDS affects speech and eating. He is also Hard of Hearing and has to use Hearing aids. He has a wheelchair that has to use as he can not walk long distances.
Mark has become chairperson of the Worster Drought Syndrome Support Group. This organisation supports children and adults with WDS.
Each year the group hold a family day where the children, parents and people who have WDS can meet up and share their experiences. The day gives a great support to all the WDS suffers but relies on donations to enable it to go ahead.

If you find my answers help, or wish to show appreciation of any support I've given you, please consider making a donation to the Worster Drought Syndrome Support Group; http://www.justgiving.com/WDS-SG

Thank you

A-Vic

Sandy will you also be doing the MAC paper this time please?

rybka

angie1 wrote: »

Hi duz anyone know if the flexed budget on task 2.2 of this paper should be based on 6 or 7 vehicles, I have used 7 as that was the actual results, not sure thats right tho?

SandyHood wrote: »

I have completed the D10 paper for PCR and can send you a copy if you email me.
Please let me know if you spot any errors.

And please make a donation to this good cause.

My son is Mark Mayer.
He has a form of Cerebral Palsy called Worster Drought Syndrome. WDS affects speech and eating. He is also Hard of Hearing and has to use Hearing aids. He has a wheelchair that has to use as he can not walk long distances.
Mark has become chairperson of the Worster Drought Syndrome Support Group. This organisation supports children and adults with WDS.
Each year the group hold a family day where the children, parents and people who have WDS can meet up and share their experiences. The day gives a great support to all the WDS suffers but relies on donations to enable it to go ahead.

If you find my answers help, or wish to show appreciation of any support I've given you, please consider making a donation to the Worster Drought Syndrome Support Group; http://www.justgiving.com/WDS-SG

Thank you

many thanks Sandy!!! you were a fantastic help!

pennie

Pennie member

Hi Everyone

Like many others, I couldn't sit the PCR exam 2 dec, due to snow - but have attempted the paper - I got confused with the stock because it states no closing stock of sellable goods.

So I simply took sales applied wastage to get production figure then went to raw materials applied this figure taking of the last bugget closing stock as new opening and applied buffer stock as closing - this I think is wrong! and would appreciate anyone who has done the paper to e-mail me their answers so that I can see where I have gone wrong - I thought section 2 although different was okay.

Capital buget through me I just applied the gain of the new spend? again I think this maybe wrong but it is not in the book - i do attend college and we havent done capital budget.

My college is doing their re-sit of PCR this afternoon, 14 dec, but I am attending my uncles funeral - instead of waiting until june I have (yesterday) changed over to the new system and will be taking the computer based exam in Jan - any help with budgetting and the paper would be great.

Thank you Pennie

rybka

PCR todays exam

Hi all

did anyone sit the exam today?
How did you find it?

angie1

Yea I did, it was very similar to the one I missed, same company and questions, they just changed the amounts you had to change, ie I think you had to reduce the sales price per tonne for the first paper, in this one you had to increase it, the memo questions were different tho, I think it made it harder for me as I found myself answering the questions I had read from the first paper instead of reading the paper properly! I still didnt have enough time, this is my second time at this papper, the last one I have to pass, had enough time in all the other exams to do it comfortably and check though it after, but PCR is a killer I think the last two sittings are just asking too much it the time avaliable.

rybka

angie1 wrote: »

Yea I did, it was very similar to the one I missed, same company and questions, they just changed the amounts you had to change, ie I think you had to reduce the sales price per tonne for the first paper, in this one you had to increase it, the memo questions were different tho, I think it made it harder for me as I found myself answering the questions I had read from the first paper instead of reading the paper properly! I still didnt have enough time, this is my second time at this papper, the last one I have to pass, had enough time in all the other exams to do it comfortably and check though it after, but PCR is a killer I think the last two sittings are just asking too much it the time avaliable.

Hi angie

yes i know what you mean,for task 1.1 i increased the price by £10 from £250 to £260 and reduced the volume by 5,000 tonnes which gave me 55,000 tonnes*£260= £14,300,000 total revenue.
I then reduced all the variable costs by applying the percentage decrease 55,000/60,000=0.916666 times all costs so reduced purchases by 5,263tonnes at purchases price calculated from the first draft budget.
the outcome was that the price reduction and the increase in volume caused less contribution earned and less profit generated by sales. so was not recommended
did you get the same/similar?

for task 1.2 i increased the volume to 66,000 and reduced the price from £250 to £245 as they said its going to be reduced by £5.
the profit seemed to be higher this time.

angie1

yea that sounds like what I got, was expecting a worse result with the higher price but it wasnt, I said lower price not recomended too. That sounds like a better way of reducing the costs, wish id thought of that, I wrote it all out again!

Yea 1.2 I reduced the selling price to £245.

on section 2 did you use 10 vehicles for the flexed or 9?

rybka

angie1 wrote: »

yea that sounds like what I got, was expecting a worse result with the higher price but it wasnt, I said lower price not recomended too. That sounds like a better way of reducing the costs, wish id thought of that, I wrote it all out again!

Yea 1.2 I reduced the selling price to £245.

on section 2 did you use 10 vehicles for the flexed or 9?

Hiya
I did it based on 9 vehicles not 10.

What did you get for your capital budget?
I did 1 car needs replacing
1 extra car required so 2 cars@130,000=260,000
less disposal 2*8,000=16,000
260,000 less 16,000=244,000

angie1

yea i did the budget on 9, but wasnt sure if that was right.
Yea needed to buy 2 vehicles, but im sure they only wanted to dispose of 1?

rybka

angie1 wrote: »

yea i did the budget on 9, but wasnt sure if that was right.
Yea needed to buy 2 vehicles, but im sure they only wanted to dispose of 1?

Yes u are right dispose 1 but I put 2 probably was thinking first paper,so got that wrong but I think only loose a few marks;) I hope

angie1

yea was hard with all the wording so similar, I had done the other paper bout 5 times, I started to do 1.2 by reducing the price by £10 before I realised, that,ll teach me to read the question properly! Least we were prepared for the capital question, you'll get most of the marks for what you put. I'm not sure I will pass with what I managed, was so short of time, didnt do the memos very well, didnt manage to finish all of 1.2, as I did section 2 first, started 1.2 then thought not much time left so answered 1.3 and 1.4 then went back to 1.2 and ran out of time! was also quite awkward cos we didnt have a proper answer booklet as we normaly do, it was sheets stapled together, so we had to keep turning the pages back and fourth to see the answers we had worked out for the next question.

rybka

angie1 wrote: »

yea was hard with all the wording so similar, I had done the other paper bout 5 times, I started to do 1.2 by reducing the price by £10 before I realised, that,ll teach me to read the question properly! Least we were prepared for the capital question, you'll get most of the marks for what you put. I'm not sure I will pass with what I managed, was so short of time, didnt do the memos very well, didnt manage to finish all of 1.2, as I did section 2 first, started 1.2 then thought not much time left so answered 1.3 and 1.4 then went back to 1.2 and ran out of time! was also quite awkward cos we didnt have a proper answer booklet as we normaly do, it was sheets stapled together, so we had to keep turning the pages back and fourth to see the answers we had worked out for the next question.

You will be fine,from what you said you put you going to pass,memos are not that important in the whole scheme of things. I'm quite positive about mine but there is always a bit of a doubt as so much information and it gets confusing a bit after you have done a few papers;)

angie1

Thanks but i'm not to sure, were most of your variances adverse for section 2, I think there was only 1 or 2 that wasnt? the fixed costs were quite a lot, thats what made me think that it may have been based on 10 not 9?