Practice Assessment 2 from AAT Study Planner

JimmyP

Hello,

I've tried to complete the Practice Assessment 2 from the AAT Study Planner and Task 3 (b) is causing me an issue!

I have performed as many calculations as I can but I don't understand where AAT are getting their answers from for Revenue and Variable Costs for Mosley Heights Hotel! Is there actually some information missing from the question, e.g the costs of food, consumables and laundry?

Thank you

anony123

Oh yes I’ve done that one last year.

They have used the high low method.
It is using the flexed budget as well, I’ve taught this to somebody else beforehand. There was a similar question in the exam so revise this well. I think it is Management Techibques. But the question in the real assessment, is much much harder.
There is nothing missing and it says in the question that they have used the high low method on the specific areas.

anony123

What area are you finding difficult?

JimmyP

Thanks for coming back.

So I did use the high/low method to calculate the variable and fixed elements of the labour costs but there are no figures in the question at all showing what the revenue and variable costs (food, consumables and laundry) are?

I've attached a copy of the question.

anony123

There was on mine

anony123

I’ll try and check I think the revenue was 368,000 then divide by the 70 which is budgeted then times by the actual amount of 60.

That is so odd not gonna lie. You defo need to revise the excel by the way 100%

JimmyP

The revenue figure for 70 rooms is 308,000 and 264,000 for 60 rooms. The answer also says that Variable costs for 70 rooms is 45,500 and 39,000 for 60 rooms.

If the question gave yo one of those numbers for each room, e.g. variable costs then you could easily work backwards and get the revenue and then calculate the missing numbers for 60 rooms but there definitely seems to be something missing!

Thanks!