pcr flex budget calculation is it correct

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:09AM in AAT student discussion
This is how I calculated the flex budget as far as I can remember<BR><BR>T/o 8,740,000 380,000 x £23.00<BR><BR>Materials ? 3,040,000 380,000 x £5.00 May have these muddled up<BR><BR>Labour ? 1,900,000 380,000 x £ 8.00 May have these muddled up<BR><BR>Electricity 1,720,000 380,000 x 4.00 plus 200,000 fixed cost<BR><BR>Stepped<BR>Quality control 480,000 4 x 120,000<BR><BR>Rent 200,000 Fixed Cost<BR><BR>Depreciation 100,000 Fixed Cost<BR><BR><BR><BR>Profit 1,300,000<BR><BR><BR>This compared to the profit of actual results of 1,290,000 gave me an adverse variance of 10,000<BR><BR><BR>How did everyone get 290F<BR><BR>Thanks

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    pcr flex budget calculation is it correct

    Hi choccyclaire<BR><BR>I put my total operating profit statement on a thread here. Please feel free to compare with mine, Im not sure how accurate i was either.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    pcr flex budget calculation is it correct

    as i remember<BR><BR>The stepped Quality costs were Favourable & so was depreciation, all other costs were adverse<BR><BR>this then leaded too the overall variance being favourable.<BR><BR>I hope this help
  • System
    System Posts: 100,534 🤖 Admin 🤖
    pcr flex budget calculation is it correct

    i think you have put the wrong depreciation figure in of 100K (this was actual) the budget should have been 400k<BR>That's the only thing i get different to you though
  • System
    System Posts: 100,534 🤖 Admin 🤖
    pcr flex budget calculation is it correct

    thank you. just have to hope they do not fail me on it.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    pcr flex budget calculation is it correct

    Yeh <BR>Dep should be 400 Not 100
  • System
    System Posts: 100,534 🤖 Admin 🤖
    pcr flex budget calculation is it correct

    So far I am sure The Operating profit should 290000(F)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    pcr flex budget calculation is it correct

    I put the same but should have used 400 for fixed depreciation therefore giving a 290 variance. Oh well only 1 figure wrong should be ok.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    pcr flex budget calculation is it correct

    YOU DO KNOW THAT YOU WERE MEANT TO DO THE PRODUCTION FOR 420000 AND NOT 350000 OR WHATEVER THE FIGURE WAS? IN THE COMMENTARY, IT SAID THAT THEY PRODUCED 420000
  • System
    System Posts: 100,534 🤖 Admin 🤖
    pcr flex budget calculation is it correct

    EVERYONE IS PROBABLY GOING TO GET DIFFERENT FIGURES, BUT REMEMBER IT WAS ONLY PART C OF ONE QUESTION, ITS NOT GOING TO MEAN EVERYONE WILL FAIL, WE HAVE GOT TO BE POSITIVE, I GOT A TOTALLY DIFFERENT FIGURE TO EVERYONE ELSE COZ MY VARIANCE WAS 1090000 FAVOURABLE. ITS PROBABLY ONE THING IVE COCKED UP ON PLUS IVE USED THE PRODUCTION FOR 420000 UNITS AS THE QUESTION SAID WAS PRODUCED.<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    pcr flex budget calculation is it correct

    Yvonne, you should actually of done the budget on the 380,000 actual figure, as you take the actual level of sales and apply the budgeted costs. They did not actually make 420,000 probably due to disposal of broken machinary (depreciation reduced).
  • System
    System Posts: 100,534 🤖 Admin 🤖
    pcr flex budget calculation is it correct

    <br><br><< <i>EVERYONE IS PROBABLY GOING TO GET DIFFERENT FIGURES, BUT REMEMBER IT WAS ONLY PART C OF ONE QUESTION, ITS NOT GOING TO MEAN EVERYONE WILL FAIL, WE HAVE GOT TO BE POSITIVE, I GOT A TOTALLY DIFFERENT FIGURE TO EVERYONE ELSE COZ MY VARIANCE WAS 1090000 FAVOURABLE. ITS PROBABLY ONE THING IVE COCKED UP ON PLUS IVE USED THE PRODUCTION FOR 420000 UNITS AS THE QUESTION SAID WAS PRODUCED.</i> >><br><br><BR><BR>Yvonne, the 420,000 Units was what the Customer wanted them to produce.................just a red herring, you should have used the ACTUAL figure of 380,000, and I had an Adverse Variance of 10 ( i think) or if you want to be politically correct (10,000), but I`m sure that if all your other workings were correct, you would only be down marked slightly for picking up the incorrect start figure.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    pcr flex budget calculation is it correct

    hi everyone ! I got a Flexible operating profit of £1,000,000 and the Actual Budget of £1,290,000 ...leaving a favourable variance of £290,000.00 profit . Choccyclaire is right from turnover to rent, but depreciation should have been £ 400,000 ..... making it £1,000,000... i hope i am right .. does anyone have the same ? i used the 380,000 actual production.<BR><BR>JP
  • System
    System Posts: 100,534 🤖 Admin 🤖
    pcr flex budget calculation is it correct

    Oh My God!<BR><BR>Yes<BR><BR>JP2004 i got the same figures as you.<BR><BR>I am happy now that someone else has the same figures as me too!<BR><BR>phew cause when i came out of the exam hall everyone had different figures but i am sure that this way was right!<BR><BR>anyways we just have to wait till august.<BR><BR>goran<BR><BR><BR>

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