PEV!!!!
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I found section 1 ok, all my variances were adverse. I made the standard cost of actual absorption and actual operations to balance. The variance was something like 21,500. The overhead absoprtion rate I made 2.00 per labour hour.<BR><BR>The second section, I had no idea what they were really asking, so I Done the factory they were closing as 40% on everything. ie divided the turnover with the production and made it something like 100.00 each for selling price then x by the 8800 then added this extra turnover to be added to the other factory's turn over then done the same sort of thing for materials, labour etc.<BR><BR>The memo's I found awful and waffled on about the variances being different because mayabe a wage rise for labour had not been taken into consideration, also that the materials were of poor quality etc. <BR><BR>The second memo I just compared gross profit margins, net profit margins and capital on return etc compared to the the original profit and loss.<BR><BR>Did anyone else do the same sort of thing????
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PEV!!!!
All my variances were adverse in section 1 too (heaving a sigh of relief!) although I can't remember the actual amounts. Definitely got £2 per hour for fix o/head absorption rate. Seems like I did pretty much the same as you.<BR><BR>In the second memo I compared roce, net and gross profit margins but couldn't see how to compare anything else pre and post Factory A closure. Did end up with a £35k increase in profit with Factory A closing so mentioned this and how it would still take over 7 years to recoup the closing down costs. Did you recommend closing Factory A? I did on the basis they didn't anticipate an upturn in sales in the forseeable future but I guess that's what the general manager of Factory B was saying.<BR><BR>Glad it's over though. BCT tomorrow and PCR thursday - serious retail therapy Friday me thinks!!0 -
PEV!!!!
Hi Baffled,<BR><BR>I got all the variances as adverse and added the 21700 to 130000 to get the total actual production cost as 151700. I also did what you did on section 2, basically adding 40% of Factory A's turnover, and muddling through the rest, so it looks like we've both either passed or failed, lets hope its a pass!!<BR><BR>Good Luck<BR><BR>Tilly0 -
PEV!!!!
What did eveyone do with the materials calculation removing the need to hold raw materials???0 -
PEV!!!!
HI<BR>I have done same way as you mentined 40% of factory A and so on. But I haven't consider any just in time stock. Did you do anything from the balance sheet? Please can somebody tell me about this? Rest I have done same way what you mentioned.<BR>I am not sure whether I will pass or fail in part 2.<BR>Good Luck0 -
PEV!!!!
i did nothing with that! just knocked off the 5% of materials costs. Oops0 -
PEV!!!!
Hi all<BR><BR>I done the same just knocked off the 5%. I was getting panicky as I still had my memo to do and I only had about 15 mins left. To be honest the whole second section had me panicking, I felt I done ok, but not enought to pass, back for another resit in June me thinks!!!!0