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September 3, 2016 at 6:54 pm
could you please confirm that the Material Usage Variace is 1000 (F)?
Thank you in advance!
This is Example 3, Chapter 3 Mix & Yield Variances
x : 27 000 $ – (5 000*2kg*3$) = 3 000 (F)
y: 17 000 $ – (5 000*1kg*2$) = 2 000 (A)
Total 1000$ (F)
September 3, 2016 at 7:25 pm
hahaha, watching the lecture till the end, so question solved. Sir, please apologize.
I`m afraid the remaining two day`s I`d better spent with practicing the variances…
September 3, 2016 at 8:03 pm
So, if I am not mistaken that the alternative method for Usage variance is:
act.usage – variance
9 900kg – 10 000 kg (5000*2 kg) – 100 kg (F) – 300$ (100kg*3$)
5 300kg – 5 000 kg – 300 kg (A) – 600$ (300kg*2$)
This results in 300 adverse.
This only indicates, that exemptions may not really help 🙁
August 29, 2016 at 12:37 pm
I am checking the exam kit of Kaplan, example 130 and I see that the proportions (mix) seem to be not correct. The exercise says that STD Cost card shows the materials to be used in producing 100 kg of the products are:
C: 20 @10$/kg
My calculations: In total, budgeted input is (50+40+20 = 110), there of to me it results that the mix is:
A: 50/110 = 0.45
B: 40/110 = 0.36
C: 20/110 = 0.18;
while referring to the answers at the end of the exam kit, the proportions are different, respectively (50;40;20). How comes? Is my rationale right (even though it seems to be quite simple calculation…..
…and thnx a lot for your lectures. I find them very helpful in understanding the topics. Thnx again.
August 29, 2016 at 12:43 pm
I found it prof….It is fine. Sorry…..
John Moffat says
August 29, 2016 at 1:17 pm
OK (but please ask this sort of question in the Ask the Tutor forum in futures, rather than as a comment on a lecture).
May 5, 2016 at 11:03 pm
Thanks for another brilliant lecture.
By the way, how would the workings differ if there both actual and standard production loss was included?
May 6, 2016 at 7:03 am
The workings will not change at all.
(In this example, although there is no standard loss, there is an actual loss (they put in more kg that should have been needed for the production) and it is dealt with in the yield variance.)
April 12, 2016 at 8:44 am
Absolutely brilliant lecture. Everything is now clear to me with regards to variance. Thanks sir 🙂 🙂 🙂
April 12, 2016 at 2:18 pm
Thank you for the comment 🙂
Damilola Salu says
March 1, 2016 at 11:00 am
WOW! Thank you so much sir. you just made variance so easy for me
March 1, 2016 at 11:48 am
January 16, 2016 at 2:13 pm
I have a question regarding the exercise 61 DYI in the revision kit.
Would I have the full mark if for the yield variance instead of calculating what should have yielded 8400 litres, Means 8000-7800 = 200 (A) then multiplied by standard cost $2.1 resulting to an adverse variance of $420. I calculated what is the standard mix for 7800 litres, resulting to 8190 then 8400-8190=210 (A) and multiplied by the weighted standard cost of 2 (210/105). I had the same answer $420.
Thanks in advance for your answer.
January 16, 2016 at 3:08 pm
You must ask questions like this in the F5 Ask the Tutor Forum and not as a comment on a lecture. Also, you do not say which Revision Kit you are referring to – there are several!!
However if you got the same answer then that is fine – there is more than one way of getting the answer and it does not matter which way you do it.
January 9, 2016 at 6:06 pm
example 4 says .. calculate the total sales margin variance.. it sells 3 products A,B,C.In the solution they used standard cost p.u to calculate profit of each product for actual sales though each product cost(actual) vary from budgeted cost.
January 10, 2016 at 8:57 am
We have to use standard costs.
Difference in actual costs would be dealt with in the normal cost variances.
January 10, 2016 at 4:55 pm
another question sir..in the solution the budgeted figure is not flexed to actual results to calculate sales margin variance..i can’t understand why ??
January 11, 2016 at 9:19 am
The sales margin variance is the different between actual profit and budget profit (with costs being kept at standard). (Just as is the total sales variance in ‘basic’ Paper F2 variances).
Just as with basic variances it is then analysed into the sales price variance and the sales volume variance. Because there are several products, the volume variance is analyses into sales mix and sale quantity variances.
January 11, 2016 at 3:39 pm
thank u so much sir.. u r d greatest teacher in ACCA ..respect from heart.
January 12, 2016 at 7:51 am
Thank you 🙂
January 9, 2016 at 5:31 pm
sir there is no lecture on example 4 of course note..and i failed to get d solution given on d note 🙁
No – there is no lecture at the moment.
December 4, 2015 at 8:34 pm
Thank you soo much
December 5, 2015 at 8:11 am
You are welcome 🙂
December 3, 2015 at 9:13 pm
Hello Mr John Moffat,
Thank you for your response. What about sales volume planning and operational variances? is that the same logic as materials as well?
December 4, 2015 at 6:59 am
Yes – it is the same logic.
I will probably add a lecture when I have the time, but it is the same logic and is less likely to be asked.
December 2, 2015 at 8:05 pm
Hello Mr John Moffat, Thank you for all your videos and effort in helping students and ultimately helping them pass. I have has success using open tuition in the past ans hoping to have continued success in Dec 2015 f5 cuz i find the paper challenging and im nervous.
That being said, I noticed there were videos for just material mix and yield variances and none for Sales Mix and Yield variances as well as Sales Volume Planning and Operational Variances. Please where can i get these vidoes incase i couldnt locate it here on the website. and if not available here, how do i go about it.
December 3, 2015 at 7:04 am
There is no lecture yet on sales mix. However the logic is the same as materials mix. There is a worked answer to the example at the end of the notes.
Shatha AlGh says
November 12, 2015 at 8:25 am
As I have been exempted from earlier papers, am not very familiar with the basic variances
my Q is will i need to know them as well for the exam?
or is learning and understanding ( Mix &Yield , Planning & Operating and Advanced Idle time) is enough to go through ?
November 12, 2015 at 10:05 am
The examiner has said that she will not ask questions just on basic variances.
However, one or two of the basic variances (any one or two!) can be asked as part of a question.
More importantly, to understand the advanced variances it is really necessary to understand the basic variances (because they expand on the basic variances). To an extent you can just learn the rules, but since 50% of the exam is discussion, it is important to understand them as well.
I think you should go through the basic variances first, but don’t worry too much about learning them.
October 14, 2015 at 10:12 am
Sir, can we use this approach for material usage variance??
material actual usage standard usage
x 9,900kg (5,000u x 2kg) 10,000kg = 100kg
y 5,300kg (5,000u x 1kg) 5,000kg = 300kg
total usage : 400kg x $8
If yes, could you check where did I go wrong in my calculation when finding the material usage variance?
October 14, 2015 at 10:39 am
The total usage is 200kg too much – not 400kg.
The standard cost is $8 per unit, not per kg..
October 14, 2015 at 11:02 am
how did you get 200kg?
October 14, 2015 at 11:42 am
300 too much of y and 100 too little of x
October 14, 2015 at 2:04 pm
I got the whole picture now. Thanks, Sir 🙂
October 14, 2015 at 8:04 pm
October 15, 2015 at 6:12 pm
The answer script for this chapter test, question 4… is B 48,500 (F) or 49,500 (F)?
October 16, 2015 at 9:09 am
Sorry it is a typing error. It is 49500 favourable.
Thank you for spotting it – I till have it corrected.
September 29, 2015 at 4:17 pm
Sir, you are a Godsend. Thank you very much for your unconditional dedication to help students face the behemoth known as F5.
November 28, 2014 at 3:53 pm
Hi, in revision Mock:
A company has budgeted on selling 7000 units of X $30 s.p and 3000 units of Y $40 s.p. Standard contribution 30% of selling price for both product.
They actually sale 8000X and 7000Y
What is the sales mix variance?
Right answer in your test is 7500 (F)
10500 X and 4500 Y
2500 (A)X and 2500 (F)Y
Total 17500 (F)
Am I wrong?
Thanks in advance
November 28, 2014 at 5:34 pm
Yes you are wrong!
You should cost out at standard contribution. Standard contribution for X is 30‰ of 30 (not 30 – 30%)!
July 31, 2015 at 12:06 pm
For sale Mix varince thers is budgted sales: A 200 B 100 C 100 and standard mix not given but in solution its A 2/4 B 1/4 and C 1/ 4 how this standard mix com please tell me
July 31, 2015 at 12:17 pm
The total budget sales are 400.
A is 200, which is 200/400 (i.e. 2/4) for the total.
Same idea for B and C
July 31, 2015 at 6:54 pm
August 2, 2015 at 3:03 pm
$0.02 per gram means 1 gram value is $0.02 then
So it should b $0.02 x 0.001 but why it $0.02 x 1000 when transfer to kg
November 14, 2014 at 12:42 pm
a company has the following standards for a mix to produce 500kg of product C
A= 200KG @ $1 PER KG=$200
B=400KG@ $1.60 PER KG=$640
actual results with output of product C was 600kgs.
A=400KG @ $1 PER KG=$400
B=500KG@ $1.60 PER KG=$800
Calculate the yeild variance
SIR IM CONFUSED!! cld u plz tel me how to calculate ds
November 14, 2014 at 1:16 pm
In future, please ask this sort of question in the F5 Ask the ACCA Tutor Forum 🙂
The standard is to input a total of 600kg to get an output of 500kg.
So for an actual output of 600kg there should have been a total input of 600 x 600/500 = 720kg,
So cost out the actual total input (900kg) at standard mix and standard cost, with the standard total input (720kg) at standard mix and standard cost. The difference is the yield variance.
November 14, 2014 at 2:27 pm
eeeeeee thankyu sir! 🙂 sorry was a bit too excited so posted it here! haha 🙂
May 26, 2014 at 3:46 pm
I believe that someone asked this question but I did not see an answer. Which lecture covers sales mix variance?
May 26, 2014 at 5:25 pm
There is no lecture on sales mix variances (but there is an example in the course notes with an answer at the back).
November 5, 2014 at 5:30 pm
I have reviewed the question on sales mix variance, however I have one question, how were the proportions assigned to A(2/4) , B(1/4) and C(1/4) in Example 4?
Please clarify. Thank you
November 5, 2014 at 5:55 pm
In the same mix as the budgeted sales.
Product A was budgeted at 200 units out of a total of 400 units, and similarly for the others.
January 11, 2014 at 12:23 am
question no 4 in mix variance, is it correct if i get the below answers?
sales margin variance= 2180(f)
sales mix variance=575(f)
sales quantity variance=2375(f)
January 11, 2014 at 3:26 am
If you mean example 4 in the chapter, then the correct answer is that shown in the lecture (and also typed at the back of the Course Notes)
November 28, 2014 at 11:24 pm
Hello sir, kindly assist me with labour idle time variance formula? thanks.
November 17, 2013 at 6:39 pm
very well explained
thank you so much………………..
October 25, 2013 at 4:28 am
thanks for the lectures opnentuition,
how do we calculate the yield variance when there is a loss
October 25, 2013 at 10:05 am
The calculation is exactly as in the lecture example.
May 31, 2013 at 1:12 pm
Dear sir i have a doubt. 15200 kg should be the total units used. Why have you taken it as the yield. Shouldn’t the actual yield be 500 units?
October 25, 2013 at 10:03 am
I have not taken 15,200 as the yield.
The actual yield was 5,000 units and this should have required 15000 kg.
May 19, 2013 at 6:41 pm
May 15, 2013 at 8:18 am
Sir, where are the lectures for sales mix variance and sales quantity variance?
May 12, 2013 at 3:49 pm
your lectures are juz simple and awesome!! 😀
btw sir, do u have lecture on topic “make or buy decision making “???
April 22, 2013 at 7:05 pm
hi John, can you work the 2006 Simply Soup” mix and yeild variance question. i seem to be stuck getting back the examiners answer.
April 23, 2013 at 1:58 pm
I finally got it, went back over the question and worked it through and finally figured it out. persistence is the key
April 7, 2013 at 6:12 pm
so good. Keep it up and God bless you.
January 19, 2013 at 11:18 am
v good lectures
November 29, 2012 at 3:59 pm
this lecture is really good, keep up the good work
November 7, 2012 at 4:15 pm
nice lecture: hope it will still be free for many more years because they are far more better than the classroom lectures we get here in Africa eventhough we pay for them. sir you mentioned in one of my earlier comments that you have uploaded lectures that work through past exam papers. where can i find these lectures?
November 7, 2012 at 7:46 pm
@chiclarence, Thank you for your comments 🙂
(and this website will always be free of charge)
You can find links to lectures working through past exam questions on this page:
October 14, 2012 at 2:21 pm
Thanks a lot:)
Miss A.. says
October 10, 2012 at 2:04 pm
Dear Sir, in the above example you said that we can get more kgs of materials in total even if we have mixed the materials in right proprotion & we have paid the right price.How come ??
November 7, 2012 at 7:43 pm
@Miss A.., Its not that we get more kg it is that we have used more kg than we should have done. The reason is that we have maybe wasted some of the materials (which obviously loses us money!).
October 4, 2012 at 1:29 am
Oh this is great
June 7, 2012 at 1:45 pm
Fantastic – it’s well explained and easy to understand
June 7, 2012 at 6:26 am
thank you!.. all credits go to the good lecturer! he made the yield variance very simple for me to understand! =P
June 5, 2012 at 4:35 pm
thank you very much excellent lectures
April 26, 2012 at 4:57 pm
LECTURES ARE GOOD!!!!!! THEY ACTUALLY EARNED ME A DIPLOMA.!!! I AM SOME WHERE!!!
April 25, 2012 at 9:49 pm
dears is it possible to save the lecture to my hard disk
October 4, 2012 at 1:28 am
April 9, 2012 at 7:08 am
Thank you OT, excellent job.
April 5, 2012 at 5:58 pm
very well explained.
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