Budgeting Help - various questions

mrderek88

Hi there

So I failed my first attempt at budgeting with 2 questions - how embarrssing!! Hopefully someone can help with some advice... I have my re-sit on Thursday!!

They are both in section 2, the first one was:

2.2, Budget Flexing & Variances:
I thought I had revised this quite well and was quietly confident going into the exam - obviously I was wrong. I dont know what the best way go about this is then? I think its the equipmen hire part of the operating statement that might be throwing me off? The past paper from my book says the equipment hire is stepped, increasing at every 8,000 units with a cost of £32,000 for 63,000. The flexed budget I need to work out is based on 68,000 units. Help anyone?

The second question is: Explanation of variances & management advice
Here I know what's wrong, Im not very good at the extended writing tasks. I have downloaded the guide off MyAAT and will go through this along with the few other examples from AAT. Anyone got any any advice on how to remember how to write a good email?

Thanks guys



Derek

coojee

mrderek88 wrote: »

Hi there

So I failed my first attempt at budgeting with 2 questions - how embarrssing!! Hopefully someone can help with some advice... I have my re-sit on Thursday!!

They are both in section 2, the first one was:

2.2, Budget Flexing & Variances:
I thought I had revised this quite well and was quietly confident going into the exam - obviously I was wrong. I dont know what the best way go about this is then? I think its the equipmen hire part of the operating statement that might be throwing me off? The past paper from my book says the equipment hire is stepped, increasing at every 8,000 units with a cost of £32,000 for 63,000. The flexed budget I need to work out is based on 68,000 units. Help anyone?

The second question is: Explanation of variances & management advice
Here I know what's wrong, Im not very good at the extended writing tasks. I have downloaded the guide off MyAAT and will go through this along with the few other examples from AAT. Anyone got any any advice on how to remember how to write a good email?

Thanks guys



Derek

For the stepped cost first work out how many blocks there are in the original budget. 63,000 units/8,000 = 7.875 and as there has to be a whole number of blocks this must be 8 blocks of 8000 units. So £32,000/8 blocks = £4,000 per block. Now work out how many blocks there are in the flexed budget, 68,000 units/8,000 = 8.5 rounded up to a whole number of blocks equals 9. So the flexed budget is 9 blocks x £4,000 = £36,000

cazalino

I would also be interested in how to write the emails as i dont seem to think along the same lines as what the answer requires! I like to dumb things down where as they require the opposite. Can i ask was the exam similar to teh 2 practice papers on the AAT website? Good luck next time