ECR Exam

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:30AM in AAT student discussion
Just wondered what your thoughts were on the absorbtion questions, think I may have messed up.<BR><BR>To calculate the rate I took the budgeted fixed overheads from the previous task (think it was approx 313,000) and then divded by the budgeted machine hours - think I did this wrong.<BR><BR>Also on marginal/abosbtion questions where it stated about under recovered, I took this as underabsorbed did other people do this.<BR><BR>When calcuating marginal cost I just added up the variable costs and on the absorbtion one I calculated the fixed element and added this on.<BR><BR>Also I said an alternative cost to fixed/variable would be semi variable<BR><BR>
«1

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    yes you are right, nothing on process costing even though we were told that it would definantly be in there!<BR>I think most people did ok one part 1 but struggled slightly with Part 2, i know i did. I was a little creative with some of the writing!<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    yeah i did that so not all lost. must admit you have a great memory. when do we get the results?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    should get results in August hopefully. This is the painful bit waiting for 2 months.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    The simiulation for unit 6 wasn't to bad, you say ive got a good memory but i can't remember what was in it. I did it in January
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    i thought the question asked why under absorption occurs. it didnt ask for an amount. put it occured because of actual overheads being greater than absorbed overheads and mentioned that absorption rate is based on budgeted figures so under absorbing is common etc etc
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    To Petrolmonkey<BR>I know I'm confused on the under recovery and fixed assets bit, I started prattling about materials and labour and realised they were the wrong assets to be talking about. I mentioned increases in fixed assets not getting absorbed straight away, as you can't just increase the sale price. Totally wrong but it's all I could think of at the time.<BR>Cheers<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    Thought I did OK.<BR><BR>However on the 2nd section last qu put the other assesment was Internal Rate of Interest instead of Return. How stupid. The com. reasons I put was that it may effect Sales of other products and would the machine hrs proble with the other products effect this new product. Forgot about residual value
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    I'm in limbo really, from the above messages, i've got the same anwers as Petrol Monkey, I'll take that as a good thing, but I know I've fluffed it on the final section, re. DCF and payback. My theory was okay though, commerical factors etc (well I think so anyway), but I dont know if that will really put a dampner on the rest of the paper. Am I right in thinking there was nothing on Process Costing (my memory is poor)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    Well well well- you could tell it was a new examiner- i dont htink i like the new examiner very much!<BR><BR>The layout spun me out so i was all messed up! <BR><BR>Cram for FRA methinks!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    yeah i got £40.00 too. I thought the question was to just explain how under recovered overheads are treated. When I went on to the marginal and absorption cost unit i got £33.00 and £41.00<BR><BR>Did any one else?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    JO: you should be ok on the NPV, if you showed your working. I always say that even if you get the answer wrong as long as you show the working and you've applied to the logic then your ok.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    on limiting factors i got the following<BR><BR>500000 units if B and C, B being the 1st and C being the 2nd <BR><BR>reported a loss of £4250000<BR><BR>as 250000 less units were produced of product C, product C contribution = 3.50 x 250000 = 875000<BR>less this from the profit from the earlier question <BR><BR> 450000<BR>(875000)<BR>425000<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    petrol monkey: am really worried now. what did you get for the first profit loss question and what did you get for the limiting factor question. just used your figures and i say the profit from the first question was £450000 and the loss in the limiting factors was £425000. you seem to be good with remembering figures what was the fixed overhead figure in the limiting factors question?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    With the limiting factors question . Product B I thought that because they only expected to sell 480,000 units i took this as the amount of units to produce. Did i get this wrong?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    I got 480,000 as well, as the budgeted sales figure
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    I did 480000 for product B aswell, as it's counter productive to make more than they can sell.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    I got the same answer as petrol monkey as well.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    Yes I got this too. From the postings it seems that most struggles on the second section. In my case I thought I did fine on the second section and not as well on the first. I struggles with the journal for the stock card! It didn't add up ad couldn't understand why!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    You will still get some marks for getting part of the question right, as long as you showed some form of workings
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    I used the £400,000 figure to calculate the OAR. I divided it by the budgeted machine hours. My OAR was £40.00 per machine hour.<BR><BR>I then multiplied it by the actual machine hours to get the overhead absorbed.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    petrol monkey got same as you on the variable and fixed unit costs
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    Yes I got the same 33.00 and 41.00 !<BR><BR>What were the contributions on the limiting factors questions. I was confused by the machine hour. How did you rank them and what quantities of B & C could be produced?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    The OAR question only asked you to worl out the OAR, so I just put £40 per machine hour. I also got £33 and £41 for the maginal/Full overhead questions.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    I ranked as B then C and produced 500,000 of each leaving a loss of around 450k
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    Contribution wew £2.50 and £3.50<BR>Contribution per machine hour £1.25 and £0.70<BR>product b rank 1 product c rank 2<BR><BR>500,000 units of each B using 1,000,000 hours and C 2,500,000 hours total 3,500,000 for limiting resource
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    I got the same answer. I think I got everything else mostly wrong though, except the stock and allocation and apportionment.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    So far i seem to have the same answers as some of you, hopefully that's good. What did you all get for the direct labour question?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    hoorah for petrol monkey i seem to have got the same answers as you for everything. hoorah!!!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    £85,750
  • System
    System Posts: 100,534 🤖 Admin 🤖
    ECR Exam

    here mate, doesn't mean to say ive got them right!!!lol

Categories

Privacy Policy