MAC anyone?

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Not happy - struggled for time.

Thought the paper looked straight forward at first glance but ended making a mess.

Couldn't get my reconciliation to balance :cry:

What was that temporary staff cost like? To increase from 5000 units to 25000 units is a bit much.

Think I managed the budget OK and the ratios were straight forward. Lifecycle costing? waffled about purchase cost would be £10K per annum as opposed to £12K for renting and that it was a method of identifying the costs of a product ove rits useful life. Is that right?

Anyhow, probably a resit but you never know. Onto DFS now :shock:


Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:MAC anyone?

    Hi

    I was hoping someone would post about MAC beginning to think hardly anyone else had taken it!

    My reconciliation didn't balance to start with...thought I was going mad but I'd worked out the absorption on actual hours not actual standard hours.

    Yeah the temp staff thing was a twist from what we normally do, think I did it ok though....

    Did we need to calculate the life cycle bit per annum? I was so excited about getting out maybe I didn't read the question properly!! I just worked out the total cost over the 5 or 6 years

    Once DFS is over we can have a well deserved break!!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:MAC anyone?

    Think i worked out the budgeted for actual wrong.

    Got the material unit price as £22.50 and the labour unit price as £1 per unit - is that right?

    Therefore £23.50 x 190000 units = 4,465,000. Must have made a mistake as there is no way i could reconcile with the actual as it was nearly £1m more. :(

    Also the linear regression? was the month 4 so it was 4500 + (100x4), ie 4900. What about the 5000 in Jan?

    The more I think about it :cry:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:MAC anyone?

    For labour I got one hour per unit, material £450/kg which gave me 4465000 like you said.

    Then you needed to add on the £62.50 per unit (labour hour) for fixed overhead absorption. I missed doing this first but the next question asked what would be the difference on a marginal statement so I went back and added all the fixed overhead variances in.

    Don't worry if it didn't balance as long as you set out how to do the reconciliation you will get marks for method and understanding.

    Yeah the linear regression one was odd.... for january (even though it's the first month) i worked out x = 5 so i just did april as x = 8 - not sure if this is right or not though!!

    still marks for understanding even if i got it wrong!

    try not to worry too much concentrate on the next exam......got 20 IAS/IFRS to learn later :roll:

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