PEV December 05 paper

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi,
Please can anyone help me, Im stuck on section 2 Dec 05 paper. I have calculated all ratios correctly however when I red additional data I got stuck. Have spend 2 hours trying to work it out but no luck, only got frustrated.
don't understand how actual variable cost for April £97.65 is calculated as well as contribution £122.35. I would be very greatful if someone could give a clear picture of how to approach such task

Thanks

Marzena

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV December 05 paper

    It took me a while to figure this one out but kicked myself when I got it.

    The figures given are based on sales of 850 units, so all you do is divide by 850 to get the figures per unit.

    So for the actuals

    Price = 187,000/850 = .................................220.00
    St. Variable Costs = (102,000)/850 =.......(120.00)
    Variable Cost Variances = 19,000/850 =... 22.35
    Contribution =................................................122.35
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV December 05 paper

    excellent, many thanks, it makes sense now
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV December 05 paper

    apologies for the confusion, in fact it was June 05 paper, im loosing it...
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:PEV December 05 paper

    PEV does that to me too :)

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