PCR- Flexible budget variance

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi, was just wondering if anyone could enlighten me.
For the flexible budget (2.1d) I got a variance of 640F. I seem to have got the other bits right e.g selling price, material price etc. So where did I go wrong? I would apprecaite if someone could break it down for me. I have read on a few other threads that the answer is 784F. I showed all my workings will I still receive some marks?
Thanks

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PCR- Flexible budget variance

    Did you get the stepped cost figure correct ? it may have been that. I think you will be ok as long as your method was correct. You only get marked down once for incorrect figure. Hope this helps
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PCR- Flexible budget variance

    Flexed Budget for 72,000 units

    Turnover 2,880
    Materials 504
    Labour 576
    Electricty 272
    Maintenance 440
    Rent & Rates 250
    Depreciation 160
    Admin 100
    Operating Profit 578

    Actual Operating Profit 1,362
    Favourable Variance of 784

    I think you will be ok, if you have showed workings, and got the logic right!

    Take Care
    Fiona
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PCR- Flexible budget variance

    Hi I actually got 740F not 640F.
    You were right the difference is my stepped cost which I put as 396 instead of 440 which is difference of 44, 740+44= 784F.
    At least I know now it was only a minor mistake.
    Thank you both for your help :D
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PCR- Flexible budget variance

    No problem. Hopefully now, you will feel a bit better about it. I felt ok about the 3 exams I sat at the time, but keep going over them in my head, and thinking of all the stupid mistakes I made! Now I think I've failed them all!

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