flex budget pcr

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Did anyone elso get 10,000 adverse variance on operating profit????

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    flex budget pcr

    nope,<BR><BR>I got £290 (F) for lex and £99,500 operating profit for section 1
  • System
    System Posts: 100,534 🤖 Admin 🤖
    flex budget pcr

    i got £266 F
  • System
    System Posts: 100,534 🤖 Admin 🤖
    flex budget pcr

    pls can you tell me how you got the 99500 profit in section 1. I wasn't far off, but I didn't know if the fifo was relevant.<BR><BR>thanks
  • System
    System Posts: 100,534 🤖 Admin 🤖
    flex budget pcr

    to me the FIFO was a total red herring as value of closing stock is after everything has been produced and doesn't form part of the production figures. Besides, SSAP9 states the valuation of closing stock, not some manager sat behind his desk.<BR><BR>To my knowledge, closing stock valuation has never formed any part of an answer in any of the past papers, anyone know different ?<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    flex budget pcr

    WELL IM GLAD EVERYONES GOT DIFFERENT ANSWERS COZ I APPEAR TO HAVE GOT DIFFERENT ANSWERS. I DID ACTUALLY SHOVE THE OPENING AND CLOSING STOCK IN BECAUSE IT DOES AFFECT THE COST OF PRODUCTION. BUT I SUPPOSE I TRIED ANYWAY, IF PEOPLE HAVE MADE LITTLE MISTAKES THEY ARE ONLY SMALL MARKS TO LOSE.<BR><BR>i GOT A FAV VARIANCE FOR THE BUDGET, IT DID KIND OF GIVE A CLUE IN THE 2.2 QUESTION BECAUSE IT SAID ABOUT THE FAV VARIANCE<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    flex budget pcr

    <br><br><< <i>Did anyone elso get 10,000 adverse variance on operating profit????</i> >><br><br><BR><BR>Yes I got the same.................I think a few of us, used the 420,000 figure which was what the Customer wanted them to produce, instead of the Actual figure of 380,000, and that is where some have favourable & we have Adverse..............I must say I did ponder for a while at changing my figure to 420,000, but after much deliberation, and talking to myself, I realised that NO!!! This figure is what they wanted us to produce, but we did not meet it.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    flex budget pcr

    I did the profit statements seperately and multiplied the closing stocks by the absorption cost per unit<BR>360 unit x 74<BR>750 units x 120<BR>No idea if its correct but it made sense at the time
  • System
    System Posts: 100,534 🤖 Admin 🤖
    flex budget pcr

    The right answer is 290 (F), definately.<BR><BR>Actual - £1,290 - Flexi - £1,000<BR><BR>What a lovely paper!!

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