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Hi ,

Can anyone else with the calculation of other production overheads in task 1.7 assessment 1?

Other production overheads include a variable element of £0.40 per unit .
Original Budget is 73,000 units other production overheads cost £46,400

Flexed budget is 76,000 units .

Thanks

• AAT Student, AATQB Posts: 264
edited October 2018
Hi emma8021

£46400/73000units=0.63 total cost per unit
0.40 is variable, therefore 73000unitsx£0.40=£29200 variable cost
Fixed cost is the difference between the total cost and variable cost, therefore
£46400-£29200=£17200 fixed cost

For the flexed budget of 76000 units we apply what we just found
76000units x £0.40 = £30400 + £17200 fixed=£47600
AAT Level 2. 2018 Distinction
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AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
• Registered Posts: 36
Thank you makes perfect sense now :-)
• AAT Student, AATQB Posts: 264
You are welcome. I also prepare for budgets, when are you having your exam?
AAT Level 2. 2018 Distinction
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AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
• Registered Posts: 36
I have my exam Tuesday evening , how did you find the exam? I'm dreading the written element.
• AAT Student, AATQB Posts: 264
I haven't been yet, maybe end of November if I feel confident enough
Calculations I find OK, it's just the written part that I need to focus on. How did you prepare for the written tasks?
AAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
• Registered Posts: 36
I literally just practised writing out the style of the answers from the test assessments then I know how to answer the question step by step and what they want from answer - I'm still finding it quite challenging to be honest just hope I manage to pull it all together for the exam. have you passed any other exams at level 4 ?
• AAT Student, AATQB Posts: 264
I have done FSLC begging this month, still no results, I am anticipating Synoptic Spring time. How about you?
AAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
• Registered Posts: 36
I've done financial statements also , passed in April :-) i'm sure you will be fine . How did you find the exam? Budgeting is my second exam on level 4 and yes i'm aiming for synoptic just after spring also as hoping to complete decision and control after Christmas. Do you currently work in accounts ?
• AAT Student, AATQB Posts: 264
FSLC I found all right, because I just finished Synoptic level 3 before starting it, so everything was fresh in my mind. I hope results will be decent
I don't currently work in accountancy, I am not looking tbh, maybe I will considered when I start ACCA
I also should mention that I do self study
Do you use any provider?What are your plans after concluding aat 4, and do you work in accountancy?
AAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
• Registered Posts: 36
I also self study and work full time as a bookkeeper - I plan to continue on to Cima/ACCA once i have finished level 4. Got my exam tomorrow so just working my way through the assessments and i cant get my head around task 1.5 (C) Assessment 2 how to work out the energy cost , have you done this assessment yet ?
• AAT Student, AATQB Posts: 264
Attach a screenshot, I can't access it from here
AAT Level 2. 2018 Distinction
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• Registered Posts: 36
Its this one.
• AAT Student, AATQB Posts: 264
I am attaching it here because I can't seem to view it in decent format
AAT Level 2. 2018 Distinction
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• Registered Posts: 36
Shall i type the question out instead?
• AAT Student, AATQB Posts: 264
edited October 2018
Use high low method
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• Registered Posts: 36
First Draft
Sales Volume 250,000
Sales Revenue £375,000

Second Draft
Sales Volume 210,000
Sales revenue £315,000

Third Draft
Sales Volume 225,000
Sales Revenue £337,500

Energy
First Draft £33,250
Second Draft £31,450
Third Draft ????

• AAT Student, AATQB Posts: 264
This is a semi variable cost because it does not go up or down proportionally with the level of activity
To find semi variable cost we can use the high low method , granted if you have high and low units of production and we need the one in-between
AAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%