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

Assessment 1.2 b & c

Please can you help me, I know b) but would like to see if my formula is correct. Completely clueless on question c)


Thanks

Best Answer

  • PeterCPeterC Registered, Tutor Posts: 219
    Accepted Answer
    Analysing the data provided, shows that:

    b)
    950 units should take 950 x 2 = 1,900 hours
    Wasted hours cost £180 at £18/hr, ie. 10 hours
    Actual hours = 1,900 + 10 = 1,910

    c)
    1,140 kg should cost 1,140 x 7.80 = £8,892
    1,140 kg actually cost 8,892 + 912 = £9,804
    Price per kg = £9,804/1,140kg = £8.60

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