# Standard Costing and Basic Variance Analysis (part 2)

#### Basic Variance Analysis: Please note that this lecture relates to Chapter 13 of the Course Notes and not Chapter 12 as stated in the lecture.

1. says

sir, how about i use the formula for price material V = (Std price-act price)*act qty

will i get d same answer? if so if u could explain how?

thankyu for dng a great job!

• says

Yes it will give the same answer.

If you multiply through your equation by the actual quantity, then it gives actual quantity at standard cost – actual quantity at actual cost.

However it is much more important to understand the logic than to just learn formulae – the examiner always checks that you understand what is happening.

2. says

Hello John am studying for June 2014 and so far your lectures are very helpful, thanks alot i would like you to advise me on how i should prepare well for my exams F5 and F6?

• says

Our lectures and course notes will prepare you for at least 90% of the exam, if not more.
However you must get hold of Revision/Exam Kits – they contain lots of questions for practice and practice is the most important thing of all.

Start studying for F5 now – the syllabus will not change for June 2014.
However, wait a few months for F6 because the tax rules will be different – new course notes and new lectures will be uploaded in February.
So best to do as much as you can on F5 now, and then start on F6 later.

• says

Thanks John for your great advise, i will do my best. Iam using BPP text and revision how do i use the codes inside those books inorder to benefit from them maximumly?

• says

I don’t know anything about the codes they have – they must say in the books what they are for

• says

Will you also update F5 lectures if so when? and how do i download them they are really helping me to understand alot of things. pliz advise.

• says

They do not need updating – the syllabus for Paper F5 is not changing. It is only F6 which will change.

3. says

Please i want to know if the use of formula will give me a full mark,because i find it very simple and easy like for Material variance :
SQ SP
}usage variance
AQ SP } Total variance
}price variance
AQ AP
when this fumula is used do i still get my full mark?
or do i need to explain to the examiner what AQ,SQ,AP,SP means?

• says

No – it is fine to use abbreviations.
Just make sure you show your workings as well, so that if you have picked up a wrong figure by mistake, then the examiner can still give you some marks for trying to do the right thing

4. says

help me. I’m confuse. This is with regards to direct materials price variance. I found somewhere in the net that this variance is computed either at purchase or at the time when direct materials is used. I also found out that what is favorable is to compute this at purchase, because it simplifies bookeeping. Now, I’m confused with the bookeeping part. It says because the inventory is recorded at standard cost, but still i’m confused with the whole idea. would anyone help me?

• says

@urenanda, No – this lecture just has simple idle time variance.
Excess idle time variance is covered in the next chapter.

5. says

I have some problems of watching
Since the video form becomes flash instead of simple flv etc.there is no more buffering records.Our internet is of pool speed,and it’s hard for us to watch online.
Can you mend it?

• says

if you are in china, you may have to use VPN – at least this is what prevented some students from China in the past.. I imagine it is the restriction of chinese government..
and the videos now are playing/streaming without the need for Flash player, try Apple Safari browser or Google chrome

6. says

Thanks for the lovely lecturers. Example 1 is on page 71 of the free online course notes, not 67 as refered to by the lecturer.

7. says

No Vedio is Appearing to play after clicking the link of any lecture. Tell me what should I do?

• says

@parrots
you mention little what you are using to access the videos,

try another browser – like google chrome, install flash player and turn OFF any add blockers if you use this sort of software