The Flexed Budget on PCR

System
System Posts: 100,534 πŸ€– Admin πŸ€–
edited June 18 in AAT student discussion
I wasn't sure which figure for output to use, so I used to the 420,000 which was at the bottom under "notes for actual budget". This really comfused me, as the actual results were shown in the data above. Did I do the right thing? I compared my flexed budget based on the 420,000 output with the "Actual Results", and worked out the variances from there. Can anyone remember whether their variances were mostly adverse or favourable?

Comments

  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    The Flexed Budget on PCR

    My Operating profit was as follows:<BR><BR> Γƒβ€šΓ‚Β£000<BR><BR>flex Budget Γƒβ€šΓ‚Β£1000<BR><BR>Actual Γƒβ€šΓ‚Β£1290<BR><BR>Variance Γƒβ€šΓ‚Β£ 290 f<BR><BR>I can't remember the individual cost amounts. sorry.
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    The Flexed Budget on PCR

    Choosing the wrong figure is one lost mark out of a possible 20 or whatever, they won't carry this forward through the whole section. Don't stress over one mistake!
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    The Flexed Budget on PCR

    Thanks Sera, good luck to you too. And to everyone!
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    The Flexed Budget on PCR

    Wasn't the turnover variance favourable????? I had the same figures but thought the variance was favourable because turnover was more than budgeted.
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    The Flexed Budget on PCR

    So does that mean that choosing the wrong figure isn't that bad if they wouldn't carry forward the mistake? No one's answered that for me and I'm worrying now.
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    The Flexed Budget on PCR

    Thats why i said small easy mistake - we all make loads of them in every single exam! they only mark you down once for little errors and do not carry them forward.<BR><BR>None of us are perfect! Good luck.
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    The Flexed Budget on PCR

    ok two marks wrong. Still enough to pass I hope<BR><img src="i/expressions/face-icon-small-smile.gif" border="0">
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    The Flexed Budget on PCR

    <br><br><< <i>I had two (F) variances which were Γƒβ€šΓ‚Β£96k and Γƒβ€šΓ‚Β£98k. these were for Elec and Stepped costs if i remember correctly. Rent+rates and dep'n were fixed... <BR><BR>Here was my operating statement:<BR>turnover was (380,000 x Γƒβ€šΓ‚Β£23 = Γƒβ€šΓ‚Β£8,740,000 - Γƒβ€šΓ‚Β£8,626,000 = Γƒβ€šΓ‚Β£114 (A))<BR>material was (380,000 x Γƒβ€šΓ‚Β£8 = Γƒβ€šΓ‚Β£3,040,000 - Γƒβ€šΓ‚Β£3,116,000 = 76k (A)) <BR>labour was (380,000 x Γƒβ€šΓ‚Β£5 = Γƒβ€šΓ‚Β£1,900,000 - Γƒβ€šΓ‚Β£1,938,000 = Γƒβ€šΓ‚Β£38k (A)) <BR>electricity was (380,000 x Γƒβ€šΓ‚Β£4 = Γƒβ€šΓ‚Β£1,520,000 + Γƒβ€šΓ‚Β£200,000 (FC) = Γƒβ€šΓ‚Β£1,720,000) - Γƒβ€šΓ‚Β£1,624,000 = Γƒβ€šΓ‚Β£96k (F)<BR>stepped cost: quantity control was (380,000 x Γƒβ€šΓ‚Β£1.20 = Γƒβ€šΓ‚Β£456,000 - Γƒβ€šΓ‚Β£358,000 = Γƒβ€šΓ‚Β£98k (F)<BR>leaving operating profit - Γƒβ€šΓ‚Β£34k (A)<BR><BR>Any one get any different????</i> >><br><br><BR><BR>I got the same for turnover, materials, labour and stepped cost.<BR>Just stuffed up the electricity. I spent over and hour trying to work out the elecy and actually calculated the same as you at 1720 but then got all confused and ended up not using it. Hopefully just the one mark wrong then.
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    The Flexed Budget on PCR

    I see where you made a mistake Kris, The stepped cost should of been Γƒβ€šΓ‚Β£480,000 budgeted - therefore a favourable variance of about Γƒβ€šΓ‚Β£122,000 or somthing. small and easy mistake to make!
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    The Flexed Budget on PCR

    I did it based on 380,000. Not sure what the 420,000 figure was there for, didn't use it for anything.
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    The Flexed Budget on PCR

    I had two (F) variances which were Γƒβ€šΓ‚Β£96k and Γƒβ€šΓ‚Β£98k. these were for Elec and Stepped costs if i remember correctly. Rent+rates and dep'n were fixed... <BR><BR>Here was my operating statement:<BR><BR>turnover was (380,000 x Γƒβ€šΓ‚Β£23 = Γƒβ€šΓ‚Β£8,740,000 - Γƒβ€šΓ‚Β£8,626,000 = Γƒβ€šΓ‚Β£114 (A))<BR><BR>material was (380,000 x Γƒβ€šΓ‚Β£8 = Γƒβ€šΓ‚Β£3,040,000 - Γƒβ€šΓ‚Β£3,116,000 = 76k (A)) <BR><BR>labour was (380,000 x Γƒβ€šΓ‚Β£5 = Γƒβ€šΓ‚Β£1,900,000 - Γƒβ€šΓ‚Β£1,938,000 = Γƒβ€šΓ‚Β£38k (A)) <BR><BR>electricity was (380,000 x Γƒβ€šΓ‚Β£4 = Γƒβ€šΓ‚Β£1,520,000 + Γƒβ€šΓ‚Β£200,000 (FC) = Γƒβ€šΓ‚Β£1,720,000) - Γƒβ€šΓ‚Β£1,624,000 = Γƒβ€šΓ‚Β£96k (F)<BR><BR>stepped cost: quantity control was (380,000 x Γƒβ€šΓ‚Β£1.20 = Γƒβ€šΓ‚Β£456,000 - Γƒβ€šΓ‚Β£358,000 = Γƒβ€šΓ‚Β£98k (F)<BR><BR>leaving operating profit - Γƒβ€šΓ‚Β£34k (A)<BR><BR><BR>Any one get any different????
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    The Flexed Budget on PCR

    i think the 420 was for the memo. i said the reduction in depreciation was due to possible disposal of broken machinary hence not being able to meet the 420 demand
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    The Flexed Budget on PCR

    I also got the profit of 290000 favourable - glad someone else got same as me.<BR>
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    The Flexed Budget on PCR

    Damn, I buggered that up then!<BR><BR>After that though, I used the same principles that I would have done if I'd used any other output figure, so they should just knock a mark off for using the wrong figure, should they? Please?<BR><BR>*Sobs*
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    The Flexed Budget on PCR

    I used the 380,000 units since this was their actual production. And did not do anything with the 420,000 demand.... got a Γƒβ€šΓ‚Β£290,000 favourable variance in the profit.
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    The Flexed Budget on PCR

    I think that the Γƒβ€šΓ‚Β£420,000 was there to take into consideration when answering the question about performance related pay. They achieved a higher profit than predicted but they did not meet demand.
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    The Flexed Budget on PCR

    I used the 420,000 in the memo to say that motivation didn't work enough to get them to meet the demand from the customer. But that was only to get it in!
  • System
    System Posts: 100,534 πŸ€– Admin πŸ€–
    The Flexed Budget on PCR

    I use 380000 Units to get flex. budget .And Operating Profit came Γƒβ€šΓ‚Β£1000 .<BR>Someone replied on the discussion board had the same answer as mine<BR>I think we should use 380000 Units to compare this with the actual results.<BR>Cause the actual Operating Profit is based on 380000. Not 420000<BR>Thanks
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