PCR - A Tutor's View
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Hi, me again. As per my PEV post, here are my thoughts on PCR (for what they're worth...)
Task 1.1
Nothing unusual here - you should all have done tasks like this on numerous occasions.
Task 1.2
The usual, simple follow on from 1.1
Task 1.3
Again, nothing unusual about the labour budget
Task 1.4
The "bring it all together" task. Again, no tricks so long as you read it carefully. Using marginal costing means ignoring the idle time and overtime premium elements of labour cost, since you are told that these are charged to fixed overheads. Parts (b) and (c) follow on as in previous papers.
Task 1.5
Limiting factors. Remember that the extra fault free production is requested, so work out what the extra resources will give, and then knock off 4%.
Task 2.1
This was just so similar to one of the recent past papers - June 2004 to be precise! Remember that a marginal costing approach was requested, which will give rise to a different actual profit to that stated.
Task 2.2
The natural follow on from task 2.1 - again, see June 2004 for the answer!
Overall a very reasonable paper, with nothing that hasn't been examined before.
Andrew Harrington
Task 1.1
Nothing unusual here - you should all have done tasks like this on numerous occasions.
Task 1.2
The usual, simple follow on from 1.1
Task 1.3
Again, nothing unusual about the labour budget
Task 1.4
The "bring it all together" task. Again, no tricks so long as you read it carefully. Using marginal costing means ignoring the idle time and overtime premium elements of labour cost, since you are told that these are charged to fixed overheads. Parts (b) and (c) follow on as in previous papers.
Task 1.5
Limiting factors. Remember that the extra fault free production is requested, so work out what the extra resources will give, and then knock off 4%.
Task 2.1
This was just so similar to one of the recent past papers - June 2004 to be precise! Remember that a marginal costing approach was requested, which will give rise to a different actual profit to that stated.
Task 2.2
The natural follow on from task 2.1 - again, see June 2004 for the answer!
Overall a very reasonable paper, with nothing that hasn't been examined before.
Andrew Harrington
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Comments
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Re:PCR - A Tutor's View
I agree, exept that the budget to be flexed had a closing stock which threw me. I wanted to use the same format as the 'company' used, so I worked on 1200 figures, and eliminated the extra with a 'marginal closing stock' carry forward. Of course I can't imagine why I did it now - but it made perfect sense then!0 -
Re:PCR - A Tutor's View
Hi
When we alllocated the overtime costs to overheads, was this the whole of the hourly cost for the overtime hour e.g the £12 or just the diff between the standard hour of £9.00 and the over time, e.g £3.00.And then the labour cost was the 4000 and then the 2000 @ the standard rate and then 2000 @ the overtime diff rate charged to overheads..
In past exam papers it did it that way the diff just charged but in this exam it just said the overtime and i wasn't to sure what it meant just be 'overtime'..
so i just charged the diif and now i'm thinking that i did it wrong.
Please put me out of my misery.
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