Task 1.7 Assessment 1

emma8021
emma8021 Registered Posts: 39 Regular contributor ⭐
Hi ,

Can anyone else with the calculation of other production overheads in task 1.7 assessment 1?

Other production overheads include a variable element of £0.40 per unit .
Original Budget is 73,000 units other production overheads cost £46,400


Flexed budget is 76,000 units .


Thanks


Comments

  • dumutroba
    dumutroba Registered Posts: 262
    edited October 2018
    Hi emma8021

    £46400/73000units=0.63 total cost per unit
    0.40 is variable, therefore 73000unitsx£0.40=£29200 variable cost
    Fixed cost is the difference between the total cost and variable cost, therefore
    £46400-£29200=£17200 fixed cost

    For the flexed budget of 76000 units we apply what we just found
    76000units x £0.40 = £30400 + £17200 fixed=£47600
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  • emma8021
    emma8021 Registered Posts: 39 Regular contributor ⭐
    Thank you makes perfect sense now :-)
  • dumutroba
    dumutroba Registered Posts: 262
    You are welcome. I also prepare for budgets, when are you having your exam?
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  • emma8021
    emma8021 Registered Posts: 39 Regular contributor ⭐
    I have my exam Tuesday evening , how did you find the exam? I'm dreading the written element.
  • dumutroba
    dumutroba Registered Posts: 262
    I haven't been yet, maybe end of November if I feel confident enough
    Calculations I find OK, it's just the written part that I need to focus on. How did you prepare for the written tasks?
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  • emma8021
    emma8021 Registered Posts: 39 Regular contributor ⭐
    I literally just practised writing out the style of the answers from the test assessments then I know how to answer the question step by step and what they want from answer - I'm still finding it quite challenging to be honest just hope I manage to pull it all together for the exam. have you passed any other exams at level 4 ?
  • dumutroba
    dumutroba Registered Posts: 262
    I have done FSLC begging this month, still no results, I am anticipating Synoptic Spring time. How about you?
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  • emma8021
    emma8021 Registered Posts: 39 Regular contributor ⭐
    I've done financial statements also , passed in April :-) i'm sure you will be fine . How did you find the exam? Budgeting is my second exam on level 4 and yes i'm aiming for synoptic just after spring also as hoping to complete decision and control after Christmas. Do you currently work in accounts ?
  • dumutroba
    dumutroba Registered Posts: 262
    FSLC I found all right, because I just finished Synoptic level 3 before starting it, so everything was fresh in my mind. I hope results will be decent
    I don't currently work in accountancy, I am not looking tbh, maybe I will considered when I start ACCA
    I also should mention that I do self study
    Do you use any provider?What are your plans after concluding aat 4, and do you work in accountancy?
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  • emma8021
    emma8021 Registered Posts: 39 Regular contributor ⭐
    I also self study and work full time as a bookkeeper - I plan to continue on to Cima/ACCA once i have finished level 4. Got my exam tomorrow so just working my way through the assessments and i cant get my head around task 1.5 (C) Assessment 2 how to work out the energy cost , have you done this assessment yet ?
  • dumutroba
    dumutroba Registered Posts: 262
    Attach a screenshot, I can't access it from here
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  • emma8021
    emma8021 Registered Posts: 39 Regular contributor ⭐
    Its this one.
  • dumutroba
    dumutroba Registered Posts: 262
    I am attaching it here because I can't seem to view it in decent format
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  • emma8021
    emma8021 Registered Posts: 39 Regular contributor ⭐
    Shall i type the question out instead?
  • dumutroba
    dumutroba Registered Posts: 262
    edited October 2018
    My answer is attached
    Use high low method
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  • emma8021
    emma8021 Registered Posts: 39 Regular contributor ⭐
    First Draft
    Sales Volume 250,000
    Sales Revenue £375,000

    Second Draft
    Sales Volume 210,000
    Sales revenue £315,000

    Third Draft
    Sales Volume 225,000
    Sales Revenue £337,500

    Energy
    First Draft £33,250
    Second Draft £31,450
    Third Draft ????

  • dumutroba
    dumutroba Registered Posts: 262
    This is a semi variable cost because it does not go up or down proportionally with the level of activity
    To find semi variable cost we can use the high low method , granted if you have high and low units of production and we need the one in-between
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  • dumutroba
    dumutroba Registered Posts: 262
    Hope this helps Emma
    Good luck tomorrow and let me know how it went, any help just let me know
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  • emma8021
    emma8021 Registered Posts: 39 Regular contributor ⭐
    Thank you that's great , yes i will let you know how i get on .
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