Sample assessment 2 Task 2 b
Yalda20
Registered Posts: 77
Hi all,
I am just trying to prepare for the synoptic assessment so going through the sample papers. I am struggling to understand hwo they have worked out the below figures:
Flexible budget calculations: Turnover 1,890.0; direct materials 453.6; direct labour 283.6; production overhead 378.0; selling & distribution costs
189.0; (fixed costs 73.8 (unchanged); total costs 1,378.0; operating profit 512.0).
The budgeted cost figures have been derived just as a % of the budgeted turnover; for example direct materials are 24%; direct labour is 15%; production overheads are 20%; and selling & distribution costs are 10%.
Any help would be much appreciated thanks so much.
I am just trying to prepare for the synoptic assessment so going through the sample papers. I am struggling to understand hwo they have worked out the below figures:
Flexible budget calculations: Turnover 1,890.0; direct materials 453.6; direct labour 283.6; production overhead 378.0; selling & distribution costs
189.0; (fixed costs 73.8 (unchanged); total costs 1,378.0; operating profit 512.0).
The budgeted cost figures have been derived just as a % of the budgeted turnover; for example direct materials are 24%; direct labour is 15%; production overheads are 20%; and selling & distribution costs are 10%.
Any help would be much appreciated thanks so much.
0
Comments

1890=15120*1575/12600, 453.6=15120*378/12600, 283.6=15120*236.3/12600, 378=15120*315/12600, 189=15120*157.5/12600, 73.8 is unchanged because it is fixed costs, 1378=453.6+283.6+378+189+73.8, 512=18901378.
24%=378/1575, so 1890*24%=453.6 15%=236.3/1575, so 1890*15%=283.6
20%=315/1575, so 1890*20%=378 10%=157.5/1575, so 1890*10%=189
Hope these will help you.0 
Hi Megan 1,
Many thanks for your comprehensive explanation it helped me to recall that I had studied these in level 3 and in level 4 FS. I really appreciate your help. Best wishes0 
by the way do you know how they have worked out Asset turnover (noncurrent assets) in Sample paper 2 Task 5 a? I know the formula is Sales/net assets so $20,000/$6025=3.3 times but the answer is 4.6. Not sure how the have worked this out. Thank you.0

Yalda
Asset Turnover (Noncurrent Assets) is Sales / NC Assets  in this case Sales / PPE.
In this example:
Sales = 20,000
PPE = £4,330
Hope this helps.
0 
Yalda
The formula you said is not correct. The calculation for Noncurrent asset turnover is just what Irrorate told you. As to Net asset turnover is Revenue / total asset  current liability, so it should be 20000/109283703=2.8 times. £6025 is total equity not net asset.
Hope this helps.0 
Hi both,
Many thanks for your response. I couldn't remember the formula so I googled it and that's what I got (Silly Google). I saw this formula in the FS book. Thank you guys and best wishes and good luck for your exams0 
Hi @Irrorate and @Megan1 
I am working through Osborne workbook, synoptic assessment 4 question 5.
I have to work out the Gearing (debt/equity) ratio.
I understand that the formula for gearing is:
Non current liabilities / NCL+ equity*100
NCL 3,350 and Equity is 4,451.
The answer in the book is 75.98% but I think I get 42.94%.
I am not sure if the brackets next to gearing means something else?
Many thanks in Advance0 

@Irrorate  thank you so much for your reply.
I have taken a picture of the question but can't see to find where I can attach it?
Equities and liabilities: this the heading.
Equity  all in one line £4451
Noncurrent liabilities all in one line £3,350
Cash and cash equivalents £32
Trade payables £1,613
Taxation  £104
There is no over draft or anything else. The above is all given.
I understand that the formula is total debt but the total debt only means noncurrent liabilities I believe not current liabilities like taxation and trade payable.
There are other examples in the book and I have used the same formula and I get the same answer as the book but not for this one.
Thank you so much.0 
@marialucas  Hi Hun,
Can you please look into my above question to see where I am going wrong?
Many thanks0 
@Yalda20
How did you work out osborne workbook, practice synoptic assessment 2, task 4, (1) (a)?
For Year1's cash flow, why does the answer deduct £60,000? The £60k will be transferred to Lincolnshire site only if Southampton closes. However, we are asked to calculate the net present value of the proposal to continue to operate the site for the next four years.0 
Hi @Megan1 
Thank you for your message about ratios.
We went through this question in class but cannot recall what my tutor said. I actually didn't think about it until now. Sorry I am not much help. I will email my tutor if she respond I will revert. Hopefully she will get back today.
I was actually questioning my self why the £50,000 is added it's a cost so it should be deducted? What the logic behind this?
I will revert as soon as my tutor responds hopefully it's before your exam. Sorry and thank you0 
@Yalda20
Thank you for your reply.
The £50,000 is added because the profit of £275,000 is after a management recharge of £50,000. In other word, before the management recharge the profit was £275,000+£50,000=£325,000, which is the actual profit.
When are you sitting your synoptice exam?
0 
@Megan1
Thank you once again. I will go through the question again in a bit to see if it makes sense. Thank you though.
I am sitting the exam on Saturday at 11. How about you? I don't feel confident at all most of my clas mates aren't sitting the exam because they feel lost and not ready. I feel the same way as them but I want to sit just for the experience.
Good luck with yours0 
@Yalda20 Thank you for your kindness. I am not in a hurry as I haven' t booked my exam yet, probably in July. Focus on your revision but please remember to come back when yours is done. Give us your feedback from your experience and your tutor's answer.
By the way, if you have any more questions which I can help with before Saturday, I will do my best.
Good luck!0