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# MABU Sample Assessment 1 Q1.6

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**5**
Hi all,

I was wondering if anyone would be able to divulge into how they calculate the whole of this question (Not A).

I have my exam in a few weeks time so I am getting stuck into practice questions and I am finding this particular task troublesome!

Thank you.

I was wondering if anyone would be able to divulge into how they calculate the whole of this question (Not A).

I have my exam in a few weeks time so I am getting stuck into practice questions and I am finding this particular task troublesome!

Thank you.

1

## Comments

5The operating statement for October showed that direct raw material costs were £142,560.

9900KG of material were used and 6000 items were made and sold.

The standard cost allows 1.6 Kilograms (KG) of material for each item at a standard price of £14.50 per KG.

(b) Complete the table of direct raw material costs, indicating whether each variance is favorable or adverse.

Direct raw material costsFlexed Budget (standard cost) £

Actual material price per kg (correct to 0.01) £

Actual Material used per item (correct to two decimal places) KG

Price Variance £

Usage Variance £

Cost Variance £

Cost variance percentage (correct to one decimal place) %

I will post question C in an additional comment as I am sure I will run out of space.

Thanks again!

5(c) Prepare the direct labour cost statement from the activity data provided.Round to the nearest whole number if necessary.

Activity Data Items Labour Hrs Cost £

Budget 18,300 3,660 65,880

Actual Results 18,800 4,700 82,720

Direct Labour cost of productionStandard labour cost of production £

Variances £ Fav/Adv

Labour Rate

Labour Efficiency

Labour Cost

Thank you

5The operating statement for October showed that direct raw material costs were £142,560.

9900KG of material were used and 6000 items were made and sold.

The standard cost allows 1.6 Kilograms (KG) of material for each item at a standard price of £14.50 per KG.

(b) Complete the table of direct raw material costs, indicating whether each variance is favorable or adverse.

Direct raw material costsFlexed Budget (standard cost) £

Actual material price per kg (correct to 0.01) £

Actual Material used per item (correct to two decimal places) KG

Price Variance £

Usage Variance £

Cost Variance £

Cost variance percentage (correct to one decimal place) %

I hope this makes sense, I can send you a link to the exam also if that helps.

http://www.aat-interactive.org.uk/elearning/Sample_assessments_AQ2016/AQ2016_L4_MABU_Sample_1/index.html

There is also a part C which I will post in an additional comment.

Thanks again!

21Price Variance: 9900*14.50=143,550 - 142560= 990 F

Usage Variance: 6000*1.6*14.50=139200-143550= -4350

Cost Variance= 990 + -4350= -3360

Flexed budget= 142560 -3360(-3360 is from the cost variance) and the answer: 139,200

Actual material price per kg (correct to 0.01) £142,560/9900=14.40

Actual Material used per item (correct to two decimal places) KG:9900/6000=1.65