AAT Mock exam 2 - Task 3 fixed costs question (Sept 2021 version)




The answer is £412,000 but I am struggling to work out how to get that answer.

Any help would be very much appreciated!

Comments

  • Pian32
    Pian32 MAAT Posts: 471
    Looking at this there feels like there is more to the question. What was part i)?

    For the Fixed assets you'd take the Overheads (288,000) and add in other fixed costs but from that list there aren't any values that can be be put in. I'm guessing that part i has you calculate the depreciation which would be 124,000 and would make up part of the fixed cost.
    AAT Level 4, MAAT
    ACCA in progress
    F4- Passed Aug 2020
    F5- Passed Dec 2020
    F6- Passed Sep 2020
    F7- Passed June 2021
    F8 - Passed Sep 2021
    F9 - Passed June 2021

    SBL
    SBR
    ATX - Planned Dec 21
    APM -
  • JSmith
    JSmith Registered Posts: 8
    Apolgies, this is the full task with answers with part D ii) being the tricky part for me







  • Pian32
    Pian32 MAAT Posts: 471
    Thanks for the full question. This confirms what I suggested above.

    Your fixed costs are the overheads plus the yearly depreciation.

    288,000 +124,000 = 412,000

    Depreciation counts as a fixed cost in most cases due to the way it's included. The amount of production in this case is irrelevant and it's solely based on the time it has been held.
    AAT Level 4, MAAT
    ACCA in progress
    F4- Passed Aug 2020
    F5- Passed Dec 2020
    F6- Passed Sep 2020
    F7- Passed June 2021
    F8 - Passed Sep 2021
    F9 - Passed June 2021

    SBL
    SBR
    ATX - Planned Dec 21
    APM -
  • JSmith
    JSmith Registered Posts: 8
    Thank you very much for taking the time to help. Really appreciate it.
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