Calling Sandywood
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Please help.
I have been working out the PCR Dec 2003 question paper and after comparing my answers to the assesers answer the following could not agree.
Task 2.1 (d)
when i Flexed the budget i found
labour cost to be £158333.(95000/3000x£5000).
The examiner s answer is £160000.
maintanace cost (95000/20000x£10000)=£47500
but again the examiner says £50000.
Please explain where im going wrong and wether these variations are acceptable.
Task 1.1 b
i calculated the wastage after adding closing stock and less op.st to the production requirement but
to my surprise the answer show a calculation of wastage ealier before cl and op stock.
Please clarify why im wrong.
Thanking you in advance ! Help
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Comments
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Re:Calling Sandywood
Labour is a stepped cost
To produce 95,000 Omegas we need 32 steps of £5,000. (This is the amount needed to produce 93,001 upto 96,000)
So is maintenance
5 steps of 20,000 Omegas are required to produce 80,001 to 100,000
Wastage in production will not be found until the materials are actually being made and stocks will need to be inflated when they go into production from the stores (not the stocks in the stores)
Both your answers demonstrate some understanding, but not the key points that are being tested
My answers are at
http://www.cxgames.co.uk/sandy/
They are annotated to try to help with problems like yours0 -
Re:Calling SandyHood
Many thanx.
After your answer im happy . I now find Stepped are easy !
I should have known you had a site early though.
All the same THANK YOU.0