Budgeting mock exam Q Help please

Newts22 Registered Posts: 59 Epic contributor 🐘
HI there

Im just trying to do the BGT mock exam 2 from the AAT site.
Stuck on question 2.1, c.

This years budget for raw materials was set at £216300. This assumes a 3% increase in production and 5% increase in raw material cost.

However, production volume is 10% higher than the previous years.

Calculate material cost forecast = £220000

I am really struggling to get to the £220000 figure, i know i will kick myself, but any help gratefully received!!

Thanks in advance


  • Diddy Mau
    Diddy Mau Registered Posts: 238 Beyond epic contributor 🧙‍♂️

    the budget of £216,300 includes 3% & 5% increse.
    but the actual increase was 10% so first remove the 3 & 5%

    Now add the actual increase in cost

    hope this makes sense
  • Newts22
    Newts22 Registered Posts: 59 Epic contributor 🐘

    Thank you! I thought I did that originally but obviously not lol, was driving me crazy but so simple!
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