AAT Prictice Assessment Budget (Level 4) Questions April 2010
JnClaude E Clifford
Registered Posts: 19 Dedicated contributor ? ? ?
Searching for help:
Can anyone share light on a Question in the Level 4 Budgeting April 20010:
Task 2.1
I need the working for Equipment hire:
Notes per question; The budget for equipment hire is stepped, increasing at every 8000 units of monthly production.
I need the calculate the flexed budget cost of the 68,000 units.
AAT answer with no workings: 68,000 units Total cost £36,000.00
I would assume at a stepped cost the increase for 63,000 units to 68,000 (68,000  63,000= 5000) there the cost remains at £32,000.00.
HELP HELP
Can anyone share light on a Question in the Level 4 Budgeting April 20010:
Task 2.1
I need the working for Equipment hire:
Notes per question; The budget for equipment hire is stepped, increasing at every 8000 units of monthly production.
 Budget Units 63,000 cost Budget units £32,000.00.
 Actual units 68000 cost of Actual £35,000.00
I need the calculate the flexed budget cost of the 68,000 units.
AAT answer with no workings: 68,000 units Total cost £36,000.00
I would assume at a stepped cost the increase for 63,000 units to 68,000 (68,000  63,000= 5000) there the cost remains at £32,000.00.
HELP HELP
0
Comments

Hi
i took my budget exam yesterday so i hope this helps .
i think you are looking at it wrong, it looks like you are confusing and mixing up stepped with semivariable.
i would start with the following
63000/8000= 7.875 which means its in the 8th stepped cost bracket
68000/8000=8.5 so this is in the ninth
32000/8=4
4x9 = 36000
so the budgeted should be 36000
sorry if this isnt very clear i will subscribe so if u need anything cleared up just ask0 
Joe Barraclough wrote: »Hi
i would start with the following
63000/8000= 7.875 which means its in the 8th stepped cost bracket
68000/8000=8.5 so this is in the ninth
32000/8=4
4x9 = 36000
so the budgeted should be 36000
sorry if this isnt very clear i will subscribe so if u need anything cleared up just ask
This is correct, as its stepped its an increase for every set amount.
its like saying if you produce 1999 units you will be charged £1,000
if you make 10001999 units its then £2,0000
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