PEV Exam

2

Comments

  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    Im happy! :D

    Like the rest got my variance operating statement to balance as well as my marginal statement, also go the 6% mentioned for the SV.

    Got the capital employed to be 7m as well with the operating profit 1m and something with a revisied ROCE of 14.??% (did people remember to reduce the sales distrubition by the 400k)

    Also the stock turnover I did the same way as EvaG, the question didn't ask for it in days or months it purely wanted to know how many times 'Stock' turned over... my answers were something like 0.14times and 0.25times, check page 189 of the osborne book, right at the bottom :)

    WELL DONE EVERYONE!

    Good luck for Thursdays PCR!

    Regards

    Dean
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    It seems everyone had trobule in marginal, revised ROCE and seasonal variations. I was stuggling in those 3 as well and presume the examiner will realise that and be more lenient on these topics.
    In the marginal costing did anyone get a difference of ร‚ยฃ20k as this was the fixed o'head exp variance?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    Well, i'll make you all feel better then. I couldn't reconcile either of the statements and I'm convinced all my variances were right but they can't have been.

    And I did a hot and bothered blond thing on the ROCE. I put the new fig over just the 3mil invested figuring this was the capital employed by brake so ended up with a new ROCE of 19. clever hover.... See you in Dec....
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    Yip! I got a 6% growth too. I couldn't get my reconciliation to balance though. :D
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    What did people get for the variance between the 2 reconciliations? and what reason did you give?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    I think that i got something like 11500 favourable.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    I got a 28k variance between the 2..due to the over absorbtion of overheads as marginal costing only incudes the fixed cost of ร‚ยฃ260,000 not the absorbed amount of ร‚ยฃ48x6000 - ร‚ยฃ288,000
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    Hi,

    I completely messed up on the absorption and marginal operating statements as well - I think i may have done the statements right but put the names the wrong way round. :oops: (I have never seen anything to do with Marginal and Absorption costing operating statements!!)

    I guessed the seasonal variation question by adding the minuses and subtracting the pluses and it seemed to look ok.

    My Memo in the Section 2 has probably let me down majorly but i did revise the target costing as a last minute thing last night so think that was ok.

    Hope everyone else did ok - there is no point worrying about it as nothing can change it now!

    Stacey
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    ooo i vowed after DFS i wouldnt read, or reply, to any posts coz then I start to panic and think "i didnt get that" or "i didnt put that so i must have failed..."

    anyway....

    i am sure we will all do fine. But no doubt you will see me posting replies here there and everywhere
    oh and btw I got increases of ร‚ยฃ400 a quarter task 1.2, so probably did get to 6% increase but i cant remember now. also the 11 odd percent sounds familiar. and yes did everyone take off the saving of x whatever it was i cant remember the figure now?

    :D
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    I am making myself feel better by reminding myself that I managed to pass intermediate without ever balancing a trial balance in an exam! so hopefully they will see that I know what i am doing but just don't know how to use a calculator! or I could just be in cloud cuckoo land.....
    Good luck for thursday
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    On the marginal costing statement I did the same statement as the question before but without the fixed overhead variances. This was the difference we had to explain in part 3 because marginal costing is only concerned with variable costs that increase with turnover i.e direct materials.

    Anyone else get that?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    Yes, I did the same.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    Did it work? that is what I was trying to do but one of my variances must have been wrong.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    Hi

    I am so relieved that someone else just explained the difference and not an arithmetical version.

    I feel relieved.
    Eva
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    :-o Oh i am soooo glad i am not the only one that did it that way. I was feeling really sick until i read your note pne!
    It's nice to know there is method in ones madness at times like PEV!!!!!
    :lol:
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    I'm feeling much better now. I did the same as you guys, ie, I ignored the FOHs for the marginal statement. I multiplied the standard marginal cost per unit by the actual output and used the DM and DL variances to get to the actual cost for actual output. It seemed to work for me. Not sure if it's correct as others seemed to balance the other way too! :shock:
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    I wouldn't worry about it anyway. At the end of the day it states that candidates must show COMPETENCE in each section and therefore there is leeway for incorrect answers. I think the main thing is showing your workings so the marker can at least give you marks for applying the correct priciples.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    Found the whole thing generally ok, managed to get the variances to balance, which was a start, guessed entirely about the marginal costing, just did it the same but without fixed overheads. Got 6% on the seasonal variations, and did stock turnover as stock/cost of sales, came up with 90 days for one of them, can't remember the other. Book was pretty ambiguous, not a particularly well worded question, from what people have said. wasn't too sure about the capacity or efficiency but seem to match some people I've spoken to. Fairly certain I messed up the RoCE too, didn't consoldiate it.

    Relatively confident of having got most of the stuff that's in every year, and hoping that'll carry me through the more random bits..
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    for the marginal cost rec statement it took total cost ร‚ยฃ37.5 less ร‚ยฃ24 then times it by No actual units 11500, then added or subtracted my variances for matterials and labour. My total marginal cost was ร‚ยฃ260k less than the total absorbtion cost statement (total fixed costs).

    in the next task I said the reason for the difference was that fixed costs are not included in margianl costing hence the 260k difference

    looks like I probably got this wrong!!!!

    any one know if I may get a mark or 2 for method??????
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    i read the question explaining the difference as in "what is the difference between the two statements". I took it to mean that the Cost of SAles would be different because you dont add in overheads. You still do add them in though, just after cost of sales. How else can your actual v actual reconcile to standard v actual? you will always be grands out.... unless i mis read it, it seems that most people stopped calculating at cost of sales. I thought you had to reconcile the two figures i.e. 13.50 x 11500, add direct variances, gives you cost of sales, add overheads gives you actual, or am i missing the point completely?? :?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    As I remember they asked for stock turnover, not stock turnover period, therefore i calculated using C.O.S / Stock
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    For those of you that calculated stock turnover as number of times turned over in a year, what answers did you get. I am worried that i might have calculated on turnover instead of COS. I think i got approx 6 times for the first and 4 time for the second compamy.

    I completely messed up the final part of 1.2. I think i got calcualtions correct if 6%, but i waffled for two pages and still did not get the point across that i now know i should have made.

  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    6 point something was what i got for Brake Ltd, can't remember the other one but 4 something sounds right....
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    Thanks, maybe i did use COS and not turnover. Must forget this one,the more i think about it, the more i convince that i did something else. (will probably wake up thinking i done an extended trial balance in pev next!!!)
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam
    michelleAAT wrote:
    i read the question explaining the difference as in "what is the difference between the two statements". I took it to mean that the Cost of SAles would be different because you dont add in overheads. You still do add them in though, just after cost of sales. How else can your actual v actual reconcile to standard v actual? you will always be grands out.... unless i mis read it, it seems that most people stopped calculating at cost of sales. I thought you had to reconcile the two figures i.e. 13.50 x 11500, add direct variances, gives you cost of sales, add overheads gives you actual, or am i missing the point completely?? :?

    I know what you mean, i really didn't get what they were expecting us to do - it didn't help that i chose not to look over marginal costing yet as i was expecting it to be in Thurs PAR not todays PEV! :roll:
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    What is the correct formula for Stock Turnover?
    My books are telling me Stocks over COS but my tutor has taught me COS over Stocks...I'm confused...what should go on the top & what should go on the bottom???? Panic..
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    Stock turnover period is Stock / C.O.S x 365 or 12
    Stock turnover is C.O.S / (Av) Stock
    I hope!
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    Am I loosing the plot , but both marginal and absorption operating statements should reconcile to actual costs.

    The only differences are that you show standard costs at variable cost ร‚ยฃร‚ยฃ13.50 x 11500, plus your varible variance plus the budgeted overheads and the fixed overhead variance.

    Difference between the two statements is that under fixed overheads all charged to the production as period costs and absorption any under and over absorption goes to the p/l (which are your capacity and efficiency variances)



  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    thank you petrolmonkey i thought i too was losing the plot

    nobody on this thread seems to be mentioning the overheads and im sat here thinking "im sure you need to include them because they make up part of your ACTUAL cost..."

    so, once again....TA for putting my mind at ease :P !
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PEV Exam

    Michelle

    I started to get worried, came out of exam quite confident and everyone seems to have different answer when you look on the forum. I have checked the book and both marginal and absorption reconciliation statements should end up with the total actual production cost.

    Wish we could get results next week

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