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PEV Dec 06

Tina SparklesTina Sparkles Settling In NicelyRegistered Posts: 17
in AAT Level 4 (Level 8 in Scotland)
Hi

Please can sum 1 look at section 1 task 1 b viii the model answer is 210 adverse but i'm sure it should be favourable, does any one agree??

Thanks xx

Comments

  • cs_1988cs_1988 Well-Known Registered Posts: 231
    Hi Tina,

    It is right i am afraid! I always get confused with the capacity as A or F as well, a good tip is the capacity + efficiency = Volume, so in this case it has too be 210 Adverse.

    Hope that helps!

    Chris
  • Tina SparklesTina Sparkles Settling In Nicely Registered Posts: 17
    Wow thank you that does help. with material and labour you can sort of reconcile them to the total variance cant you, is there anyway of checking with the overheads if they are all correct (the variances) .
  • cs_1988cs_1988 Well-Known Registered Posts: 231
    If your cost reconciliation card doesn't agree you know there's a problem! So if that happens i would go back and go over the variances!

    It is usually the Fixed Variances where the mistakes happen with me! Fixed Overhead expenditure is easy, so if you get Volume - Capacity + Efficiency they should be right!

    If you cant find the problem don't panic! Your marked on everything you do so if you have just got one formula wrong it's not the end of the world.

    Chris
  • Tina SparklesTina Sparkles Settling In Nicely Registered Posts: 17
    Do you do the 3 or 4 line approach? i think i have been taught differently to work the variances. i don't think you will know what im on about with the 3 and 4 line approach.
  • cs_1988cs_1988 Well-Known Registered Posts: 231
    Hi Tina,

    no not a clue lol :thumbup1:

    For the Fixed Overhead i do

    FO Expenditure V = Budget - Actual
    FO Volume V = Standard for A Output - Budgeted
    FO Efficiency V = Standard for A Output - Actual
    FO Capacity V = Acutal - Budgeted

    Volume = Efficiency + Capacity.

    Just put the Volume in the reconciliation.

    But as i dont know what you were asking not sure if that helps!!! :thumbdown:
  • heartsandstarsheartsandstars Feels At Home Registered Posts: 76
    cs_1988 wrote: »
    Hi Tina,

    no not a clue lol :thumbup1:

    For the Fixed Overhead i do

    FO Expenditure V = Budget - Actual
    FO Volume V = Standard for A Output - Budgeted
    FO Efficiency V = Standard for A Output - Actual
    FO Capacity V = Acutal - Budgeted

    Volume = Efficiency + Capacity.

    Just put the Volume in the reconciliation.

    But as i dont know what you were asking not sure if that helps!!! :thumbdown:

    My tutor has told me to put the efficiency and capacity variances in the reconciliation and not use the Volume - Would the examiner give the same marks whichever was included?
  • cs_1988cs_1988 Well-Known Registered Posts: 231
    :001_smile:Just looked at past exam papers, there is examples of them doing both, so don't think it would matter either way!
  • heartsandstarsheartsandstars Feels At Home Registered Posts: 76
    ^^ Thanks for looking - I'm at work so only sneaking on when I can!
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