PDSY Sample Assessment Task 4 (a) - Help please!

Hello,

I'm not quite sure if I am in the right category but if someone can help me, I'd be very grateful :)

I'm preparing myself for PDSY exam sitting in July. I did the sample assessment 1 and I got stuck with the Task 4 (a) for calculating marginal cost per unit.

The question I'm struggling with is;

The variable element of production overheads is equal to 15% of the direct costs (The direct costs are all variable) Marketing and administration costs are fixed.

Direct Cost: NP1 £18.00
Production overhead: NP1 £3.60

The answer is £20.70 - I presume this consists of £18 + £2.70 - but how can I work out £2.70?

Please can someone tell me how I can get this calculation right?
Thank you!

Best Answer

  • Adele69Adele69 CambridgePosts: 320
    Accepted Answer
    What is PDSY? Sounds like a question on Costing method.

    Marginal Costing only uses direct production costs, with indirect costs included in Income Statement as a time based expense. So POH £3.60 consists of £2.70 (15% of Direct Costs £18.00) and £0.90 Indirect Costs which are not included in the Marginal Cost p/u but would be under Absorption Costing.
    AppleTrees

Answers

  • AppleTreesAppleTrees Posts: 3Registered
    Hello Adele69,

    Thank you so much for your answer :):)
    PDSY is the AQ2016 Synoptic Assessment, which I am very much dreading about as it consists mostly written reports :'(

    I notice you are in Cambridge, I am also based in Cambridge :) good luck with your study!

    Many thanks
  • Adele69Adele69 CambridgePosts: 320AAT Student
    Hi AppleTrees

    Ah that would be why I didn't know, as I'm still doing AQ2013. I was studying L3 at CRC last year, but they dropped L4 so was in a bit of a pickle on what to do since I could see AQ2016 was going to be harder, ended up going distance learning. I've sat Fin Statements, Fin Performance and Budgeting so far (all at FI on Hills Rd).

    Sounds from what I've read like Synpotic is challenge both in getting/using a good understanding of all the basics from Fin Statements, Fin Performance and Budgeting; as well as good time management as the exam is divided into time blocks unlike the other online exams where you only have one Finish button and can skip back to the first questions. Good luck with the revision.

    Adele
  • AppleTreesAppleTrees Posts: 3Registered
    Hi Adele,

    What a coincidence I take my exams at FI on Hills Road too!

    I think some people who chose AQ2016 are shaken by the Synoptic and Decision and Control assessments. I am one of them. It's too late for us to change it to AQ2013 now though. I was watching a webinar by FI regarding Synoptic and their basic advice is that "we could be tested for anything from Fin Statements, Fin Performance and Budgeting as well as some topics from the past levels" :s I'm only a human so I can remember so much but not everything!

    Good luck!

    Erin
  • Helenrb123Helenrb123 Posts: 2Registered
    Very interesting to read your comments. I did Level 2 at CRC last year where the teaching was not that great so am now doing Level 3 in Godmanchester, doing 2016. I take the synoptic exam in 2 weeks and am overwhelmed by the amount to remember. Good luck to you both with your exams
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