Practice assessment 1 - Task 8a

ZanaZana Posts: 17AAT Student
Hi,

Can someone please help me with this task?
Any help would be much appreciated! Thanks!



Comments

  • sophie_612sophie_612 LondonPosts: 102Registered
    can anyone explain how to get the answers on this one please
  • sophie_612sophie_612 LondonPosts: 102Registered
    @dumutroba do you know the answer to this please?
  • dumutrobadumutroba Posts: 265AAT Student, AATQB
    Cost material per mat requisition is £400000/1600(400+1200)=£250
    Cost material per set up 600000/600(150+450)=£1000
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  • dumutrobadumutroba Posts: 265AAT Student, AATQB
    Following from the previous post the total materials handling for Rose is £250x400 requisitions=100000 and for Thyme £250x1200=300000
    The set up is 1000*150=150000 for Rose and Tyme 1000*450=450000
    AAT Level 2. 2018 Distinction
    AAT Level 3. 2018 Distinction
    AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
    Xero Certified Advisor
  • CornishPixieCornishPixie Posts: 105Registered, MAAT, AATQB, AAT Licensed Accountant
    Ok, so you already know that the total materials handling is 400,000 and 600,000!

    For the cost driver per material requisition, it is: 400,000 / (400+1200) = 250
    For the cost driver per production set up it is: 600,000 / (150+450) = 1000

    Total material handling for Rose will be: 400 x 250 = 100,000
    Total material handling for Thyme will be: 1200 x 250 = 300,000

    Total production set up for Rose will be 150 x 1000 = 150,000
    Total production set up for Thyme will be: 450 x 1000 = 450,000

    Hope that helps.
    dumutroba
  • CornishPixieCornishPixie Posts: 105Registered, MAAT, AATQB, AAT Licensed Accountant
    If you are stuck on b), then you are told that Rose takes 3 hours to complete a unit and Thyme takes 2 hours to complete a unit. Therefore,
    For Rose it will be 3 x 50,000 = 150,000
    For Thyme it will be 2 x 25,000 = 50,000
    Total is 200,000

    Then:work out the hourly rate. So that would be 400,000 + 600,000 / 200,000 = £5 per hour

    Therefore, for Rose, the calculation will be 150,000 x £5 = £750,000
    And for Thyme, the calculation will be 50,000 x £5 = 250,000
    dumutroba
  • sophie_612sophie_612 LondonPosts: 102Registered
    @dumutroba and @CornishPixie thank you both so much for your help
    dumutroba
  • CornishPixieCornishPixie Posts: 105Registered, MAAT, AATQB, AAT Licensed Accountant
    You are very welcome.
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