Need some help asap!!!!!

aaron0121

Hi everyone,

I need some help on an osborne practise paper question.

Ukia Limited uses target costing when developing new products.
A new product is being considered which has the following cost and revenue information.

Sales - the demand is expected to average 8,000 units per month, at a selling price of £12.00 per
unit.
Materials - the product requires 0.5 kg of material U for each unit.
Labour - each unit requires 12 minutes of labour at £18 per hour.
Overheads - the product would be manufactured in a separate factory, with total fixed production
overheads of £16,000 per month
Profit - the gross margin required is at least 25%


Complete the following table, showing all amounts to 2 decimal places.

Maximum production cost per unit £ I got 9.00, i worked it out by doing 12*0.75
Build up of maximum production cost per unit:
Materials £ i think its 3.40. I worked this out by doing 0.5*0.75 then*9=3.37 rounded to 3.4
Labour £ 3.60 by doing 12/60*18=3.60
Overheads £ 2.00 is it just 16000/8000=2

Maximum cost per kilo for material U £ ????

Can anybody please help me to find the maximum cost per kilo, i have my exam in like 5 hours
and i'm starting to panic.

aaron0121

oh wait i think it's just 9*0.75=6.75 rounded to 6.8

Am i doing this question correct, or is it just a coincidence that i'm getting the correct answer.
Can anyone help, 3 hours until FP exam!!!!!!!

Jo Clark

Hello Aaron

How did your exam go?


JC

aaron0121

Hi Jo,

The exam went fine, mostly variances ad/fav and of course the 2 writing tasks.

Last exam for me personal tax on the 25th of July :001_smile:

Have you finished all your exams?

Jo Clark

Hello Aaron

Pleased to here it was fine.

Yes, I have sat all my exams, waiting on the last result and I'm not tempted (yet) to look at MyAAT.

Have you completed ICAS?

Good luck with PTX!


JC

aaron0121

All the best with your last result.

My 1st submission of ICAS was the deadline of the 29th of june, so i have to wait 5-6 weeks probably for any news.
For ICAS i did Cookridge Carpets, one of the scenario assessments.

Have you completed ICAS yet?

Jo Clark

I'm doing it now... inbetween visits to the forum!

aaron0121

:thumbup1:

Sammmy88

Which exam was it you just took?

aaron0121

Financial Performance, one of the hardest exams of level 4 in my opinion.

Sammmy88

Eeeak!! I am doing budgeting at the moment

aaron0121

budgeting is not too bad, my cbt exam was mostly the same as the cba. Keep practising the cbas and you should be fine :thumbup1:

Also have you tried revising from osborne?

Sammmy88

Thank you! :-) sooo nervous as its my first Level 4 exam!!

No I haven't tried the osbourne yet!

aaron0121

If you go onto www.osbornebooks.co.uk/elearning, there is 2 practise assessments for each topic of
aat level 4.

Have a look at the practise assessments for budgeting, may help for your cba budgeting exam.

Goodluck with your first exam :001_smile:

Sammmy88

Thank you :-) I am sure the 6 week wait will kill me!