Help Please - Level 4 - Decision and Control Practice Paper 1 - Task 2C

Hi

Please can someone let me know how they work out the answer for 2C. Calculate the actual price per kg of material?

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  • dumutrobadumutroba AAT Student, AATQB Posts: 196
    Can you attach the info?
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  • NataliedoryNataliedory AAT Student Posts: 22
    Please see attached
  • dumutrobadumutroba AAT Student, AATQB Posts: 196
    1140 kg x 7.80 - ? = 912 adverse
    8892 - ? = -912
    ?=8892+912
    ?=9804/1140 actual quantity used= 8.60
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  • dumutrobadumutroba AAT Student, AATQB Posts: 196
    Hope this help
    I am sitting the exam at the end of this month so revising as mad, moving house as well!
    When will you have your exam?
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  • NataliedoryNataliedory AAT Student Posts: 22
    I have my exam at the end of the month too and I can’t remember any of the formulas 🙈 good luck with it, I think I’m going to fail!
    Thanks for your help
  • NataliedoryNataliedory AAT Student Posts: 22
    Can somebody please help with the question attached?
  • NataliedoryNataliedory AAT Student Posts: 22
    @dumutroba please can you help?
  • dumutrobadumutroba AAT Student, AATQB Posts: 196
    edited January 16
    Trade receivables formula
    TR days = TR/Sales x365, substitute

    30 days =120000/sales x 365
    Sales =120000x365/30
    Sales=1460000, check if correct by inserting in formula

    Gross profit % is 25%, and this is simply 25% of your sales, therefore
    1460000 x25%=365000 is Gross profit

    Same method is applied to your operating/net profit

    Cost of sales is the difference between sales and gross profit, therefore

    1460000 - 365000=1095000

    Fixed production costs are 40% of COS, so
    1095000x40%=438000
    The rest from COS is your variable production cost

    Non production cost is simply Gross profit - Operating profit, so 365000-219000=146000
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  • NataliedoryNataliedory AAT Student Posts: 22
    edited January 16
    Thank you @dumutroba how do you work out section e?
  • dumutrobadumutroba AAT Student, AATQB Posts: 196
    edited January 16
    The rest from COS is your variable production cost
    1095000-438000fixed cost=657000 variable cost


    E) Trade payables days
    TP days=TP/COSx365
    117000/1095000x365=39 days
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  • NataliedoryNataliedory AAT Student Posts: 22
    @dumutroba - Hey! How are you getting on with the studying? Please can you help me with the attached question?
  • dumutrobadumutroba AAT Student, AATQB Posts: 196
    edited January 20
    Hi Nat, I am revising mainly theory and written questions and I am bored as hell going through the same things over and over again, but 1 week left till exam so feeling pretty confident. On top of that moving house at end of the month soooo....

    When tackling these questions the first thing I do is to calculate cost card for the materials and labour
    Taking the budgeted information for the materials £21000/6000kg=£3.5 per kg of material
    6000kg/3000 units=2kg per unit

    Using those figures it is very easy to simply substitute in the formula and calculate the price and usage variance

    Same can be done for labour

    For the variable overheads remember that they are calculated exactly the same as the labour rate and efficiency variance
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  • NataliedoryNataliedory AAT Student Posts: 22
    edited January 20
    @dumutroba I don't think i can do this exam in a week, i haven't given myself enough time to learn it all. I feel for you having to move house, I bought a puppy at the wrong time so trying to study is a nightmare!
    Please can you explain how i get the Standard marginal Cost of actual production?

    I have a few other things i am stuck on too from paper 2.

    Task 7 A) Optimal Production units?
    Task 7 B ) MAXIMUM PROFIT FROM THE OPTIMAL production?
    Task 8 B II) THE REQUIRED SALES VOLUME?

    If you have chance please could you help me? No worries if not as i understand you must be very busy.

    Thanks for all your help!
  • dumutrobadumutroba AAT Student, AATQB Posts: 196
    Task 7

    Material required per unit is (product X)
    800kg/400 units=2kg
    Do the same for y and z
    Contribution per unit is obviously 4-1.5 =2.50, same is repeated for the other 2
    Contribution per limited factor is the contribution devided by the limited factor we use per unit, therefore
    2.5/2=1.25
    Tge 3 products are ranked like this:
    Y 600unitsx 0.8kg=480kg
    Z 400x1.80=720kg
    This leave us with 1600kg-1200kg=400kg material for X. We are using 2kg per unit, therefore 400/2=200 units can be made
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  • dumutrobadumutroba AAT Student, AATQB Posts: 196
    Maximum profit is calculated

    X 200 units x £2.50 contribution per unit=£500
    Y 600x1.60=960
    Z 400x2.70=1080

    That is total contribution of £2540 less fixed costs, gives max profit of £1785
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  • dumutrobadumutroba AAT Student, AATQB Posts: 196
    edited January 20
    Task 8

    Required sales volume will simply be your toatal fixed cost divided by the target fixed cost per unit

    65000+45000+35000/5.75=25,217 units rounded
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  • NataliedoryNataliedory AAT Student Posts: 22
    dumutroba said:

    Maximum profit is calculated



    X 200 units x £2.50 contribution per unit=£500

    Y 600x1.60=960

    Z 400x2.70=1080



    That is total contribution of £2540 less fixed costs, gives max profit of £1785

    @dumutroba - how do you get the fixed costs?

    Also Can you let me know how you get the answer for Standard marginal Cost of actual production on task 1.3?

    You're going to smash this Exam!!!
  • dumutrobadumutroba AAT Student, AATQB Posts: 196
    Fixed cost are given in the condition of the task as 755
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  • NataliedoryNataliedory AAT Student Posts: 22
    @dumutroba Yes they are.. i was looking for ages and didn't realise i could stroll down. What day do you have your exam?
  • dumutrobadumutroba AAT Student, AATQB Posts: 196
    28th Monday
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  • dumutrobadumutroba AAT Student, AATQB Posts: 196
    Marginal cost is your variable cost so 48000-9000=39000
    39000/3000 units=£13 is your standard marginal cost
    So 13x3200=41600 is your standard marginal cost for actual production level
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