practice assesment sample 1 task 6 help please

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


  • kelsmickkelsmick AberdeenRegistered Posts: 89
    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


    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
  • clementinaclementina Registered Posts: 12
    Thank you
  • ButchaButcha Registered Posts: 4
    This forum is so helpfu . Thank you! :-)
  • StephanieDStephanieD Registered Posts: 2
    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.
  • StephanieDStephanieD Registered Posts: 2
    Please ignore my last post. I have worked it out
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