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Shatha AlGh says

Sir,

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 ?

thanks

John Moffat says

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.

Erica says

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?

John Moffat says

The total usage is 200kg too much – not 400kg.

The standard cost is $8 per unit, not per kg..

Erica says

how did you get 200kg?

John Moffat says

300 too much of y and 100 too little of x

Erica says

I got the whole picture now. Thanks, Sir

John Moffat says

You are welcome

Erica says

Hello Sir.

The answer script for this chapter test, question 4… is B 48,500 (F) or 49,500 (F)?

John Moffat says

Sorry it is a typing error. It is 49500 favourable.

Thank you for spotting it – I till have it corrected.

Bhagat says

Sir, you are a Godsend. Thank you very much for your unconditional dedication to help students face the behemoth known as F5.

Anzor says

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?

49500 (A)

49500 (F)

7500 (A)

7500 (F)

Right answer in your test is 7500 (F)

My calculation:

Budget 7000+3000=10000

8000+7000=15000

70%15000 30%15000

10500 X and 4500 Y

2500 (A)X and 2500 (F)Y

2500*(30-30%)=52500 (A)

2500*(40-30%)=70000 (F)

Total 17500 (F)

Am I wrong?

Thanks in advance

John Moffat says

Yes you are wrong!

You should cost out at standard contribution. Standard contribution for X is 30‰ of 30 (not 30 – 30%)!

aliimranacca007 says

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

John Moffat says

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

aliimranacca007 says

Thank you

aliimranacca007 says

20g= 0.02kg

$0.02 per gram means 1 gram value is $0.02 then

1g=0.001 kg

So it should b $0.02 x 0.001 but why it $0.02 x 1000 when transfer to kg

Sakina says

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

John Moffat says

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.

Sakina says

eeeeeee thankyu sir! sorry was a bit too excited so posted it here! haha

Slav says

Dear John,

I believe that someone asked this question but I did not see an answer. Which lecture covers sales mix variance?

John Moffat says

There is no lecture on sales mix variances (but there is an example in the course notes with an answer at the back).

Noreen says

Dear John,

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

John Moffat says

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.

wilson12345 says

question no 4 in mix variance, is it correct if i get the below answers?

sales margin variance= 2180(f)

price variance=770(a)

sales mix variance=575(f)

sales quantity variance=2375(f)

John Moffat says

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)

AUWAL says

Hello sir, kindly assist me with labour idle time variance formula? thanks.

sampatheym says

very well explained

thank you so much………………..