Help Please  Level 4  Decision and Control Practice Paper 1  Task 2C
Nataliedory
AAT Student Posts: 26
Hi
Please can someone let me know how they work out the answer for 2C. Calculate the actual price per kg of material?
Please can someone let me know how they work out the answer for 2C. Calculate the actual price per kg of material?
0
Comments

Can you attach the info?AAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
Xero Certified Advisor0 



I have my exam at the end of the month too and I can’t remember any of the formulas 🙈 good luck with it, I think I’m going to fail!
Thanks for your help0 

@dumutroba please can you help?0

Trade receivables formula
TR days = TR/Sales x365, substitute
30 days =120000/sales x 365
Sales =120000x365/30
Sales=1460000, check if correct by inserting in formula
Gross profit % is 25%, and this is simply 25% of your sales, therefore
1460000 x25%=365000 is Gross profit
Same method is applied to your operating/net profit
Cost of sales is the difference between sales and gross profit, therefore
1460000  365000=1095000
Fixed production costs are 40% of COS, so
1095000x40%=438000
The rest from COS is your variable production cost
Non production cost is simply Gross profit  Operating profit, so 365000219000=146000AAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
Xero Certified Advisor0 
Thank you @dumutroba how do you work out section e?0

The rest from COS is your variable production cost
1095000438000fixed cost=657000 variable cost
E) Trade payables days
TP days=TP/COSx365
117000/1095000x365=39 daysAAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
Xero Certified Advisor0 
@dumutroba  Hey! How are you getting on with the studying? Please can you help me with the attached question?0

Hi Nat, I am revising mainly theory and written questions and I am bored as hell going through the same things over and over again, but 1 week left till exam so feeling pretty confident. On top of that moving house at end of the month soooo....
When tackling these questions the first thing I do is to calculate cost card for the materials and labour
Taking the budgeted information for the materials £21000/6000kg=£3.5 per kg of material
6000kg/3000 units=2kg per unit
Using those figures it is very easy to simply substitute in the formula and calculate the price and usage variance
Same can be done for labour
For the variable overheads remember that they are calculated exactly the same as the labour rate and efficiency varianceAAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
Xero Certified Advisor0 
@dumutroba I don't think i can do this exam in a week, i haven't given myself enough time to learn it all. I feel for you having to move house, I bought a puppy at the wrong time so trying to study is a nightmare!
Please can you explain how i get the Standard marginal Cost of actual production?
I have a few other things i am stuck on too from paper 2.
Task 7 A) Optimal Production units?
Task 7 B ) MAXIMUM PROFIT FROM THE OPTIMAL production?
Task 8 B II) THE REQUIRED SALES VOLUME?
If you have chance please could you help me? No worries if not as i understand you must be very busy.
Thanks for all your help!0 
Task 7
Material required per unit is (product X)
800kg/400 units=2kg
Do the same for y and z
Contribution per unit is obviously 41.5 =2.50, same is repeated for the other 2
Contribution per limited factor is the contribution devided by the limited factor we use per unit, therefore
2.5/2=1.25
Tge 3 products are ranked like this:
Y 600unitsx 0.8kg=480kg
Z 400x1.80=720kg
This leave us with 1600kg1200kg=400kg material for X. We are using 2kg per unit, therefore 400/2=200 units can be madeAAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
Xero Certified Advisor0 
Maximum profit is calculated
X 200 units x £2.50 contribution per unit=£500
Y 600x1.60=960
Z 400x2.70=1080
That is total contribution of £2540 less fixed costs, gives max profit of £1785AAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
Xero Certified Advisor0 
Task 8
Required sales volume will simply be your toatal fixed cost divided by the target fixed cost per unit
65000+45000+35000/5.75=25,217 units roundedAAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
Xero Certified Advisor0 
@dumutroba  how do you get the fixed costs?dumutroba said:Maximum profit is calculated
X 200 units x £2.50 contribution per unit=£500
Y 600x1.60=960
Z 400x2.70=1080
That is total contribution of £2540 less fixed costs, gives max profit of £1785
Also Can you let me know how you get the answer for Standard marginal Cost of actual production on task 1.3?
You're going to smash this Exam!!!0 
Fixed cost are given in the condition of the task as 755AAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
Xero Certified Advisor0 
@dumutroba Yes they are.. i was looking for ages and didn't realise i could stroll down. What day do you have your exam?0

28th MondayAAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
Xero Certified Advisor0 
Marginal cost is your variable cost so 480009000=39000
39000/3000 units=£13 is your standard marginal cost
So 13x3200=41600 is your standard marginal cost for actual production levelAAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
Xero Certified Advisor1