practice assesment sample 1 task 6 help please

clementina

I was wondering can someone please help me with budgeting practice sssesment 1 task 6 both A and B please thank you.

kelsmick

for 6a

Selling price by 5% = 6 x1.05 = 6.3
reduce sales volume by 10% = 84,000 x 0.9 = 75600

Materials are labour are variable so divide each cost by the original sales volume then multiply by the new sales volume

Energy price has already increased by 4% so you need to remove the increase then revise it to the new price of 6% 17680 / 1.04 * 1.06

Depreciation is stepped at 10,000 units so 8100 / 9 * 8

b

Stand direct labour cost = budgeted total cost / budgeting production = Standard cost * actual production

Labour rate = budgeted total cost / budgeted hours = standard rate
actual total cost / actual hours = actual rate
standard rate - actual rate * actual hours

Labour efficiacy = budgeted labour hours / budgeted production = standard efficiency
actual hours / actual production = actual efficiency
(standard efficiency - actual efficiency) * standard rate * actual production

labour cost = labour rate plus or minus your labour efficiency.
If the labour efficiency is favourable you add if its adverse minus it.

Hope this helps

clementina

Thank you

Butcha

This forum is so helpfu . Thank you! :-)

StephanieD

With the depreciation can I ask for the working? I think I know where the 9 comes from as this is the amount of steps increase but I am confused as to where the 8 comes from? I hope this makes sense, I am feeling slightly thick at the moment. Any help would be great, thanks.

StephanieD

Please ignore my last post. I have worked it out