PCR

System
System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
edited June 18 in AAT student discussion
There was alimiting factor and it was labour hours!! Thats what everyone in my class put anyway!
There had to be a reason else they wouldnt have asked you how to cope with extra work???
ยซ1

Comments

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

    I agree did you think that the question said all 3 staff were sick all period 7 ?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    I put the limiting factor was labour and that there was a shortfall of 320 hrs to produce the extra?

    Does anyone else agree??
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    Yes exactly what i got. thankyou so much.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    it was definantly labour, and due to 3 members of staff off sick!! I recommended that they employ temp staff or review closing stok levels and replenish the stock when 3 members of staff return from sick leave!
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    I put them too. oh well if your ok i will be. good luck
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    thats exactly what I put use agency staff and reduce the stock levels!

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

    I am so pleased that I can came on the forum before I go off for the summer, as I found the paper this morning weird as there has never been one like it. But it is nice to be able to agree that there was a problem with the labour and I also said employ extra staff.

    Many thanks
    Eva :D
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    I put hire temporary staff and reduce number of closing stocks too
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    Petrolmonkey you are usually spot on with your knowledge did you get a labour shortage ?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    Yes, it was definitely a different format to the last few past papers that no doubt all of us used to practise with!!
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    I am hopeful that we have got this correct.I think tha they have to chane some questions to see if students know the logic aswell as the method.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    from what I can remember

    Hours require for normal production 4,305 hours
    Hours required for addition production 350
    Total hours required 4,655

    Labour available was 2,975
    Hours avaiable of ot was 1,360
    Hours available 4,335

    Shortfall 320 (i think)

    Its all been a bit of a blur, crqcked open a drink when I got home
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    yay...that looks very familar to me!!!

    i think it was different and what is capital budgets??? i just put that its a fixed budget for assets which cannot be flexed as it wouldnt change on reflection to the output??!! what did everyoe else think??

    also with the limiting factor...there was no profit per labour hour as no selling price...is that right?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    Limiting factor was labour hours as there was insufficient hours to continue with order. I thought that to startoff with no sales figure,so you couldn't even work out the contribution to which was the most profitable.

    I put that capital budgets weere more for invstment cost centre, where as the other budget was for controlling costs of production. Must admit that did throw me, so I just rambled.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    yeah i rambled too...heres no point missing it out u might aswell guess at it...! so how did you work out production..? cos i didnt know which one to reduce??!

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

    You couldnt the question was to account for revised production which was orginal budget plus additional order, then goes onto the part where what could be done to meet the demand.

    ir reduce closing stock or hire additional staff. You couldnt work out which was more profitable as there was no sales figure. Hence you cant work out the contribution and rank which has more contribution per labour hour.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    All I can remember was that i went a step further and said that each employee had a shortfall of 19hrs!

    So taking the said 320hrs divided by 17 is 18.98750249750962405960 :lol: and what were we told, to round up!

    Im glad this thread is in agreement!

    Regards

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

    I agree that the labour was the limiting factor (although if they had all the staff they could have done it!!). For the recommendations i put either employ temp staff/ extend overtime hours or make more stock in earlier periods. I thought it said in the question that stocks couldn't be adjusted?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    Hi there

    I thought the paper over all wasnt too bad, much better than the December one! actually left half an hour before time had finished which isnt like me!

    I put labour as the limiting factor, from what i remember it said 1400 sigmas were required and 600 thetas, it was 7 hrs to make a sigma and 4 or 5 hrs to make a thetas.

    done 17 employees x 35 hours 5 weeks to get the standard hours, then 17 employees x 80 overtime restriction to get overtime overs!

    Strugled on the capital budget bit but just woffled my way through!

    Said to hget extra staff to increase labour hours for production and to reduce closing stocks!

    Fingers crossed! :)
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    Well the question didn't say that there would definitly be a limiting factor, but that there might be if any?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    Why would you have to give TWO reasons if there was NO limiting factor?

    Regards

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

    Hi

    The question said there 'might' be a limiting factor, from my calculations i found there was a limiting factor and it was labour hours, you can't make the amount of units required if we only have a certain amount of hours to make them!

    Also the questions after that said to give TWO reasons how to meet production, based on labour hours being the restriction to 3 members of staff being off sick, i suggested getting more staff and reducing closing stocks to meet units required! :)
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    This is where im getting confused with you... whether the question said "might" or "definitely"...

    The the subsequent questions asking for reasoning implies there will be at least one limiting factor. AAT do throw in some trick type questions but even the AAT are not that mean to ask for TWO reason if there was no limiting factor.

    Also did the additional information not say that closing stocks would remain the same? So i'm not sure that reducing closing stock is a viable answer?

    Im now totally chilled, had a little red wine and probably letting my tongue slip, so apologise to all! :oops:

    Regards

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

    I remember that I only had 30 hours to use for the additional order, which is the same as the figures mentioned above. :lol:

    I redid the production budget as Sales less opening stock plus closing stock including the whole of the additional order as if there wasn't a limiting factor.

    I thought the last question of 1.1 was too easy to be true. I kept looking for a catch! Just the given opening stock multiplied by the given absorbtion cost per unti!
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR
    JaneK wrote:

    I thought the last question of 1.1 was too easy to be true. I kept looking for a catch! Just the given opening stock multiplied by the given absorbtion cost per unti!

    Indeed! I thought exactly the same - It was a bit unnerving if the truth be told but then I thought the AAT arent out to catch you with trick questions so I quickly moved on!

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

    I agree that 1.1 was straight forward. That is probably why 1.2 was different to any past papers for limiting factors. If 1.2 would have just been to work out the limiting factor from he extra data as in past paper then it would have been a very easy section 1.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    :) Hi just wondered if you knew how the PCR paper is marked, is it 50% per section or another combinatin ie 30% section 1 70% section 2.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    didnt you add all the production costs up i.e. materials and labour, add the absorption rate and then divide by production units to give the unit cost?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    I though it asked for unit cost of finished stock. it said in the dat that finshed stock had a aborption cost of 45 & 60 per unit. i just did finished stock x by them numbers.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:PCR

    the absoprtion cost is the absorption of overheads. you still need to calculate production costs ie materials and labour. you then add in overheads and total it up. then divide it by "good production" to give unit cost, hence cost per stock unit. to work out stock cost you multiply your closing stock figure by the unit cost

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