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

AAT Student Posts: 26
Hi

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

• AAT Student, AATQB Posts: 264
Can you attach the info?
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• AAT Student Posts: 26
• AAT Student, AATQB Posts: 264
1140 kg x 7.80 - ? = 912 adverse
8892 - ? = -912
?=8892+912
?=9804/1140 actual quantity used= 8.60
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• AAT Student, AATQB Posts: 264
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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• AAT Student Posts: 26
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!
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• AAT Student Posts: 26
• AAT Student, AATQB Posts: 264
edited January 2019
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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• AAT Student Posts: 26
edited January 2019
Thank you @dumutroba how do you work out section e?
• AAT Student, AATQB Posts: 264
edited January 2019
The rest from COS is your variable production cost
1095000-438000fixed cost=657000 variable cost

TP days=TP/COSx365
117000/1095000x365=39 days
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• AAT Student Posts: 26
@dumutroba - Hey! How are you getting on with the studying? Please can you help me with the attached question?
• AAT Student, AATQB Posts: 264
edited January 2019
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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• AAT Student Posts: 26
edited January 2019
@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.

• AAT Student, AATQB Posts: 264

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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• AAT Student, AATQB Posts: 264
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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• AAT Student, AATQB Posts: 264
edited January 2019

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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• AAT Student Posts: 26
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!!!
• AAT Student, AATQB Posts: 264
Fixed cost are given in the condition of the task as 755
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• AAT Student Posts: 26
@dumutroba Yes they are.. i was looking for ages and didn't realise i could stroll down. What day do you have your exam?
• AAT Student, AATQB Posts: 264
28th Monday
AAT Level 2. 2018 Distinction
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AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%