A-LEVEL EXAMPLE
ACCOUNTING RESPONSES
A-level (7127)
Marked responses
7127 Paper 2 7127/2: 16 and 17
See responses to 25-mark questions to show how different
levels are achieved and understand how to interpret the mark
scheme.
Version 1.0 October 2017
, A-LEVEL ACCOUNTING – 7127 – PAPER 2 – EXAMPLE STUDENT RESPONSES
Contents
Contents Page
Question 16 – 25 marks 3
Question 17 – 25 marks 11
2
, A-LEVEL ACCOUNTING – 7127 – PAPER 2 – EXAMPLE STUDENT RESPONSES
Please note that these responses have been reproduced exactly as they were written and have
not been subject to the usual standardisation process.
Specimen paper 2, question 16
Question
Stancost Ltd manufacture high quality wooden furniture for homes and offices. The company
operates a standard costing system.
The managing director is very concerned that the actual profit for the month at £22 770 is
significantly less than the budgeted profit of £90 000.
The cost accountant provides the following information.
Budget Actual
Sales and £650 per £600 per
800 tables 860 tables
production table table
25 metres per £5.50 per 35 metres per £4.50 per
Materials
table metre table metre
15 hours per 19 hours per
Labour £20 per hour £17 per hour
table table
The cost accountant has also calculated the relevant variances.
The managers of the relevant departments have seen the figures above and have made some
initial comments.
Manager responsible for sales.
“The price variance was the result of having to lower the price because of increased competition.”
Manager responsible for materials.
“The price variance was the result of negotiating a much better deal with a new supplier.”
Manager responsible for labour
“We have followed other companies in the industry and employed workers on zero hour
contracts and this has reduced our wage bill.”
The Managing Director believes that the managers may be covering for each other and the
reasons given are not the real causes of the variances but have been caused internally.
Assess the significance of the variances on the performance of the business and the
Managing Director’s view that the variances are caused internally.
[25 marks]
AQA Education (AQA) is a registered charity (number 1073334) and a company limited by guarantee registered in 3
England and Wales (number 3644723). Our registered address is AQA, Devas Street, Manchester M15 6EX.
ACCOUNTING RESPONSES
A-level (7127)
Marked responses
7127 Paper 2 7127/2: 16 and 17
See responses to 25-mark questions to show how different
levels are achieved and understand how to interpret the mark
scheme.
Version 1.0 October 2017
, A-LEVEL ACCOUNTING – 7127 – PAPER 2 – EXAMPLE STUDENT RESPONSES
Contents
Contents Page
Question 16 – 25 marks 3
Question 17 – 25 marks 11
2
, A-LEVEL ACCOUNTING – 7127 – PAPER 2 – EXAMPLE STUDENT RESPONSES
Please note that these responses have been reproduced exactly as they were written and have
not been subject to the usual standardisation process.
Specimen paper 2, question 16
Question
Stancost Ltd manufacture high quality wooden furniture for homes and offices. The company
operates a standard costing system.
The managing director is very concerned that the actual profit for the month at £22 770 is
significantly less than the budgeted profit of £90 000.
The cost accountant provides the following information.
Budget Actual
Sales and £650 per £600 per
800 tables 860 tables
production table table
25 metres per £5.50 per 35 metres per £4.50 per
Materials
table metre table metre
15 hours per 19 hours per
Labour £20 per hour £17 per hour
table table
The cost accountant has also calculated the relevant variances.
The managers of the relevant departments have seen the figures above and have made some
initial comments.
Manager responsible for sales.
“The price variance was the result of having to lower the price because of increased competition.”
Manager responsible for materials.
“The price variance was the result of negotiating a much better deal with a new supplier.”
Manager responsible for labour
“We have followed other companies in the industry and employed workers on zero hour
contracts and this has reduced our wage bill.”
The Managing Director believes that the managers may be covering for each other and the
reasons given are not the real causes of the variances but have been caused internally.
Assess the significance of the variances on the performance of the business and the
Managing Director’s view that the variances are caused internally.
[25 marks]
AQA Education (AQA) is a registered charity (number 1073334) and a company limited by guarantee registered in 3
England and Wales (number 3644723). Our registered address is AQA, Devas Street, Manchester M15 6EX.
