Home For AAT student members AQ 2016 Professional Diploma in Accounting Management Accounting: Decisions and Control

MDCL AAT Practice Assessment 2 - Operating Statement

eljxeljx Registered, AAT Student, AATQB Posts: 1

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


  • CornishPixieCornishPixie 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
  • Nb123Nb123 Registered Posts: 1
    Hey guys I’ve had a look through the whole forum unfortunately can’t find the answer - can someone help with this question please
  • Pian32Pian32 Registered Posts: 260
    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.
    AAT Level 4, MAAT
    ACCA in progress
    F4- Passed Aug 2020
    F5- Planned for Dec 2020
    F6- Passed Sep 2020
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