Comments

  1. avatar says

    Mr. Moffat,

    For question number 2, we used $10 for the standard cost of variable overheads (I intuitively used that too), but now that I keep thinking about it I’m questioning why. Is the reason because Variable O/H are absorbed by labour hour and thus we can use the cost of labour? In the example we were given a specific cost per unit for variable cost ($2, which was different than labour – $5), so is it safe to assume if we are not given a specific cost per unit for Variable O/H we can use the cost of labour?

    Thanks for your fantastic lectures!

    Rachel

  2. avatar says

    I simply cannot describe how thankful I am for your Variance lectures, Sir John Moffat, or rather all the lectures you have uploaded. I simply cannot express my gratitude in words nor can i repay your kindness. I was sinking in FMA for Variance particularly because my lecturer laid down to many formulas to memorise then to understand the reasoning behind the formulas like you have done. I can now approach variance questions (up till the point where I have seen your lectures) with utmost confidence. Thank you sir!!

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