PEV Dec 03 exam

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:26AM in AAT student discussion
Just tried to do above exam and completely struggled with most of 2.2
on (i) have what revised net assets which I know got to take into account depreciation but for life of me cant see where they get the figure of 1,000,000 from

prev info was off bal sheet for nov 2003
Fixed assets at cost £8000000
Cumulative depreciation (2000,000)
Net book value £6,000,000

if depreciation is straight line,but no percentage given (not that i can see anyway), cant understand how get to 1,000,000 ??

Can anyone explain what Im not seeing

At this rate may as well give up and do my xmas shopping next week and catch up at home, by revision standards Im going to fail! :cry:

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Dec 03 exam

    The figure for depreciation is given to you in the operating statement - depreciation £1,000,000.

    Take a deep breath, calm down, and have another go. Best of luck for next week, then you can hit the shops!

    Jackie
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Dec 03 exam

    :lol: Thanks Jackie.
    Think I need new glasses, finding it hard to take in all info and figures.

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Dec 03 exam

    .
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Dec 03 exam

    Sorry to hijack this post but i was doin this paper in section 1 based on the flights and pilots variables.

    I dont understand how they got the £112.50 as the OAR. It works out from the budget side but the actual side is a totally different OAR. Th paper doesnt mention that we absorb on the basis of Budget/actual hrs so why did they assume it is to be absorebed on the budget of 112.50? Is there a reason for this?

    I need to get this round my head. Thx
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV Dec 03 exam

    Other information states foxed overheads are charged to operations on the basis of flying hours

    Im not sure I follow what you saying, but I simply

    took budget fixed overhead cost £75,600 divided by number flying hours 672 = £112.50 BOAR

    The £600 diff on actual overheads to budget o/heads does get reported as adverse variance on operating statement

    Not sure if this helps

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