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Registered Posts: 3
Hello,

I'm not quite sure if I am in the right category but if someone can help me, I'd be very grateful

I'm preparing myself for PDSY exam sitting in July. I did the sample assessment 1 and I got stuck with the Task 4 (a) for calculating marginal cost per unit.

The question I'm struggling with is;

The variable element of production overheads is equal to 15% of the direct costs (The direct costs are all variable) Marketing and administration costs are fixed.

Direct Cost: NP1 £18.00

The answer is £20.70 - I presume this consists of £18 + £2.70 - but how can I work out £2.70?

Please can someone tell me how I can get this calculation right?
Thank you!

• CambridgeAAT Student Posts: 320
What is PDSY? Sounds like a question on Costing method.

Marginal Costing only uses direct production costs, with indirect costs included in Income Statement as a time based expense. So POH £3.60 consists of £2.70 (15% of Direct Costs £18.00) and £0.90 Indirect Costs which are not included in the Marginal Cost p/u but would be under Absorption Costing.

• Registered Posts: 3

PDSY is the AQ2016 Synoptic Assessment, which I am very much dreading about as it consists mostly written reports

I notice you are in Cambridge, I am also based in Cambridge good luck with your study!

Many thanks
• CambridgeAAT Student Posts: 320
Hi AppleTrees

Ah that would be why I didn't know, as I'm still doing AQ2013. I was studying L3 at CRC last year, but they dropped L4 so was in a bit of a pickle on what to do since I could see AQ2016 was going to be harder, ended up going distance learning. I've sat Fin Statements, Fin Performance and Budgeting so far (all at FI on Hills Rd).

Sounds from what I've read like Synpotic is challenge both in getting/using a good understanding of all the basics from Fin Statements, Fin Performance and Budgeting; as well as good time management as the exam is divided into time blocks unlike the other online exams where you only have one Finish button and can skip back to the first questions. Good luck with the revision.