# MDCL AAT Practice Assessment 2 - Operating Statement

Hi,

Please could anyone help with the AAT practice assessment 2 task 3 part A and B? I have attached the file.
I have a rough idea on some areas of it but am getting a little stuck completing the whole thing. I don't want to risk not knowing this as its a 15 mark question!

Thank you

• Registered, MAAT, AATQB, AAT Licensed Accountant Posts: 116
If you have a look back at previous posts on this forum, you will find your answer eljx
• Hey guys I’ve had a look through the whole forum unfortunately can’t find the answer - can someone help with this question please
• First part you need to convert the variable element to the actual quantity produced. *3200/3000

Standard marginal cost of actual production = (21000+15000+3000)* 3200/3000 = 41,600

Material Price = 0 can be seen as the same amount of material was used at the same price
Material usage = 22400 - 21000 = 1,400 (Actual usage * standard price - Standard price for quantity produced) F
Labour rate = 0 (given)
Labour Efficiency = 16000 - 19200 = -3200 (remove (-) and label as Adverse in question) Equation is the same effectively as material usage
Variable OH Rate = 384 (given) F
Variable OH efficiency = 640 A
Actual Marginal cost of production 43,656 This is your check point it allows you to double check your answers above as they should match. Take your Standard marginal cost and add adverse variances and subtract favourable ones.

FO budget = 9000 (given)
FO expenditure v = 1000

Total cost = 53,656

The question as a whole is a straight variance question. If you understand how to get each variance it's a plug in the figures type answer.
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