Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Yield variance
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- April 28, 2015 at 8:29 am #243024
I’m sorry for that silly and just move here. 😛
Revision kit F5 for exam up to August 2015 – questions: 39.8 and 41.8
I can see this is the same question but with the solution there are different ways in the revision kit and I pretty sure that it is wrong for 39.8 when they use 4000kgx0.9 ( 4000kg should be actual output which did produce) instead of 5100×0.9 ( real actual output should produce).
My answer:
(2,810+1,910+380=5100) should produce (x90%) 4,590
But did produced 4,000
Yield variance in litres of output 590
@std cost $2
Yields variance in $ 1,180 (A)Is it a correct answer, Sir?
So, I can understand simply that yield variance is different between actual output should have been produced (calculated from actual input) and actual output did produced.
Many thanks Sir!!!
April 28, 2015 at 11:37 am #243061You have still not said which Revision Kit you are referring to. I assume it is BPP (but they are not the only company who produce them!!!).
The answer in the book is correct ($1,311).
You can either do what the answer does, or if you prefer you can do it your way but if you do it your way then the 590 litres should be costed at the standard cost per litre of output, which is $2/0.9 = $2.2222
590 litres x 2.2222 = $1,311.
Again, I do suggest that you watch the free lectures!
April 29, 2015 at 6:52 am #243181Now I understand clearly. It’s piece of cake. 😀
I definitely watch them Sir.Thank for your kind help!!!
April 29, 2015 at 8:07 am #243208You are very welcome 🙂
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