Budgeting assessment

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Roselyn
Roselyn Registered Posts: 1
in AAT Level 4 (Level 8 in Scotland)
Hi all, I am bit on task 4b. from aat assessment 1 don't understand how to calculate variable production overhead.
Please help

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  • N4T
    N4T Registered Posts: 191
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    What is the question? I don't have access to AQ2016.
  • Zoynal98
    Zoynal98 Registered Posts: 65
    edited March 2017
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    Hi Roselyn,

    Please see below the workings for Task 4 (b) (AQ2013 Sample Assessment 1):

    Sales Revenue: (£1,166,400/216,000 units)*18200 units = £98,280
    Material Used: (18,000 units*3 kg/unit)*£0.75/kg = £40,500
    Direct Labour: ((18,000 units*5 mins/unit)*60mins = 1500 hours) 1500hrs - 1250hrs = 250hrs (Overtime)
    Basic = 1250hrs*£16/hr = £20,000 + (250hrs*(£16*1.5 (50%)) = £26,000
    Variable Production overhead: (£77,000/210,000 units)*18,000 units (Units produced relating to April) = £6,600
    Fixed production overhead: £13,200/12months = £1,100

    Hope this helps.

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