AAT Prictice Assessment Budget (Level 4) Questions April 2010
JnClaude E Clifford
Registered Posts: 19 New 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 semi-variable.
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 1-999 units you will be charged £1,000
if you make 1000-1999 units its then £2,0000
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