# HELP Financial Performance

Registered Posts: 50 Epic contributor 🐘
My result for financial performance was NYC, so here we go again second time round on Wednesday. Now looking through practice papers and found some thinngs that i am not sure how the AAT worked out, any help would be appreciated. :001_smile:

CBT - 1

1.4

I can't seem to reach the answer for Direct materials bottles usage.

The AAT have - £60, i got - £260.

This is how i got my answer...

Usage variance = SP(SQ - AQ)

Sp = £2000/10000 = 0.2

SQ = 10000 AQ = 11300

So...

0.2 x (10000 - 11300)
0.2 x (-1300)
= -260

Any Ideas!

I also don't see where the figure for the budgeted standard cost for actual production.

The AAT got 30030, i'm not sure how they got to this answer.

Any ideas!

• Registered Posts: 248 Dedicated contributor 🦉

It's calculated like this...

The standard quantity is 10,000 units / 10,000 bottles = 1 unit per bottle.

The standard quantity of actual production = 1 unit per bottle * 11,000 actual bottles = 11,000 units.

The standard price = £2,000 budgeted material cost / 10,000 standard units = £0.20

So the standard quantity of material for actual production at standard price = 11,000 * £0.20 = £2,200

The actual quantity of material at standard price = 11,300 * £0.20 = £2,260

So..

£2,200 - £2,260 = -£60 or £60 Adverse

I hope this clears things up for you
AAT
Level 2 - 2011
Level 3 - 2012
Level 4 - 2013

ACCA
F4 - Corporate Law - Dec 2015 (passed)
F5 - Performance Management - Dec 2014 (passed)
F6 - Taxation - Dec 2013 (passed)
F7 - Financial Reporting - Jun 2014 (passed)
F8 - Audit & Assurance - Dec 2015 (passed)
F9 - Financial Management - Jun 2015 (passed)
• Registered Posts: 50 Epic contributor 🐘
Thank you Clintm 12

That has cleared it up, i did get £2260 at one point but wasnt sure.

Also do you know how they got the £30030 for the budgeted standard cost for actual production, because i normally work out the variances and work backwards.

Thanks again
• Registered Posts: 248 Dedicated contributor 🦉

Budgeted/Standard cost of actual production is calculated like this.....

Total budgeted cost = £27,300

Budgeted production = 10,000 bottles

Budgeted cost of production per bottle = £27,300 / 10,000 = £2.73

Actual production = 11,000 bottles

Budgeted cost of actual production = 11,000 * £2.73 = £30,030

That's the long version for clarity, it could have been calculated like this...

11,000 / 10,000 = 1.1
1.1 * £27,300 = £30,030

AAT
Level 2 - 2011
Level 3 - 2012
Level 4 - 2013

ACCA
F4 - Corporate Law - Dec 2015 (passed)
F5 - Performance Management - Dec 2014 (passed)
F6 - Taxation - Dec 2013 (passed)
F7 - Financial Reporting - Jun 2014 (passed)
F8 - Audit & Assurance - Dec 2015 (passed)
F9 - Financial Management - Jun 2015 (passed)
• Registered Posts: 50 Epic contributor 🐘
Thanks once again, very clear now. :laugh:

I wish the AAT would show how they got their answers to the practice assessments, assesments would be much easier

Thank you