Budgeting help needed!

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Cookiex
Cookiex Registered Posts: 9 Regular contributor ⭐
in AAT Level 4 (Level 8 in Scotland)
Hello everyone. I am doing the practice assessment 1 (Osborne book)

Task 1.4 (B)

How do I work out the variable production overhead for May.

Thank you for your help :)

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  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034 mod
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    Does your question look anything like part (c) of Q9 of this practice exam?
    http://www.rtanet.com/osborne6/q9.asp
    Sandy
    sandy@sandyhood.com
    www.sandyhood.com
  • Cookiex
    Cookiex Registered Posts: 9 Regular contributor ⭐
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    Thank you for the reply. On the Osborne website it looks like question Q11.
  • Jo Clark
    Jo Clark Registered Posts: 2,525 Beyond epic contributor 🧙‍♂️
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    Question 11 of Budgeting Test 1 or 2?
    ~ An investment in knowledge always pays the best interest ~
    Benjamin Franklin
  • Jo Clark
    Jo Clark Registered Posts: 2,525 Beyond epic contributor 🧙‍♂️
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    Hello Cookie

    If it is Test 1 - http://www.rtanet.com/osborne6/q11.asp

    Take the total variable production overhead for the year (20,000), divide by the number of units made in the year (100,000) then multiply this up by the number of units made in May (8,000).

    The answer being 1,600.

    Hope this helps.


    JC
    ~ An investment in knowledge always pays the best interest ~
    Benjamin Franklin

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