Help with a costing paper

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Any one out there who could help me please,i am taking the ECR paper tomorrow having already failed in June. I am going through the pass papers, and in section 2 for paper dec05, Task 2.4, how do you work out the machine hours/unit, if the contribution/unit is 0.43. I have the answere as .002 but how do you get that?

Any help please, thanks

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help with a costing paper

    morning debbie

    to get the machine hours per unit you would

    divide the machine hours required 300 by the units made and sold 150,000

    giving you the answer of 0.002 for product N

    that info is given on the additional info on page 14

    hope that helps

    i spent solong last night going through past exam papers and have now a sheet of formulas i am carrying around everywhere today to remember them

    Good luck

    Tracy
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help with a costing paper

    Hi, thanks for that, i just couldnt remember, have got up early to revise again, just now have to get my head about process accounts, as that came up in the june paper, and thats the section that i failed on.

    Are you also taking the FRA paper on wednesday?

    Debbie
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help with a costing paper

    certainly am and that is the one i am not really confident about. i still cannot get my head around what goes on p&l and what on the balance sheet. i am just going over apers again and again, but it just wont click.

    tracy
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help with a costing paper

    The P & L contents relate to the transactions within the trading period that contribute to calculating the profit (or loss).

    The BS is 'long-term' and is a snapshot at one time only.

    If you consider the bank balance - it wouldn't contribute to the calc of profit, but the cost of raw materials would. There is a logic behind what goes where - that might be easier to remember than specific items.

    Good luck!

    Helen
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help with a costing paper

    Hi, Tracy can u help on another question 4 me, its on june06 paper section2 task 2.1 how do u work out the sales revenue figure for more batches, then the direct materials cost etc.

    Thanks

    Debbie

    Or if any1 could answer, thanks again
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help with a costing paper

    to get the sales revenue for more batches, divide the sales revenue by the amount of batches made (30,000 / 5,000) giving you the revenue per item, then times that by the amount in the new batch

    so

    30,000 / 5,000 = £6

    £6 * 6,000 = £36,000
    £6 * 7,000 = £42,000

    hope that helps

    Tracy
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help with a costing paper

    Thanks this is a nightmare, I think i know it but when i go to check the answeres, i havent got it quite right, have alreay failed one, but dont to again, i am also taking the fra on wednesday, i find that one easier than ECR.

    Its the process accounts as well, theres so much to take in, just had a break from revising, just about to re start again,

    Best of luck every 1 for tomorrow

    Debbie
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help with a costing paper

    Hi, any1 I need help on pass paper june06 ECR, Task 2.1 how do you work out the direct materials/ labour and overheads on 6,000, i have been trying for ages and just can not see how you get the answeres.

    Please, thanks
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help with a costing paper

    Hi Debbiehood

    The expenses you are looking at are variable cost which increase per unit of output.

    To find out a cost per unit of output, you divide the variable expenses by the unit of output it is for. This figure is the cost per unit.

    Then you multiply by the figure you want the cost for.

    The working is as follow

    Direct material £1250 / 5000 unit = £0.25 per unit
    £0.25 x 6000 = £1500

    Direct Labout £3000 / 5000 = £0.60 per unit
    £0.60 x 6000 = £3600

    Overhead £7500 / 5000 = £1.5 per unit
    £1.5 x 6000 = £9000

    Hope this help and you can now work out how to get the figure for 7000 units

    If you are suffering from pre exam nerve, just relax, forget this question and try again if you are calmer.

    Good luck

    Westcastle




  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help with a costing paper

    Thanks for that, I am now struggling with task2.2 off the same pass paper june06. I have got as far as the break even sales revenue, but how do you work out the mos in number of batches, then sales revenue.

    Thanks again

    Debbie
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help with a costing paper

    Margin of safety is budgeted sales volume-breakeven

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Help with a costing paper

    Quote from the exam question:-
    Task 2.2
    (a) Using the Data and your own calculations from Task 2.1, calculate:
    • the budgeted break-even volume, in number of batches (rounded up to the
    nearest whole batch) and sales revenue, for the TV dinners range
    • the margin of safety, in number of batches and sales revenue, for the TWO
    forecast activity levels shown below
    • the margin of safety, as a percentage (to two decimal places), for the TWO
    forecast activity levels shown below.
    Batches made and sold 5,000 6,000

    You no doubt have the break-even volume now
    once you have rounded that to the nearest whole batch then multply by the price to find the break-even sales revenue

    And I think Gem's reply shows you what you now need to do to find the respective Mos of each

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