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Hello Sir,
I want to know that if weare given with revised standard prices for two products and are asked to make an operating statement reconciling budgeted contribution with actual contribution then shall we write material planning price variances measured at budgeted output straight after the budgeted contribution to get revised contribution at budgeted output ?and secondly what should be used to calculate material mix and yield variance use revised i.e standard price or revised standard price?these two parts are from the same question
moreover if we calculate maerial price and operational variances do we still need to calculate material price variance separately?
many thanks hope u get my questions 🙁
I would be rather glad if u give me the proforma for this operating statement involving material price planning and operational variances so I would be able to understand these in a better way through easy steps 🙂The examiner has said that she will not ask for a full operating statement. She expects you to know what it is, but she will not ask you to prepare one.
Also, it is very unlikely indeed that she will ask mix & yield variances, and planning & operational variances in the same question.
If it were to be asked, then the operational price, mix, and yield variances would be calculated exactly as normal, but comparing the actual results with the revised standard cost card.
The planning variances would be calculated again exactly as normal, but treating the revised cost card figures as though they were ‘actual’ and comparing them with the original standard cost card.
so ths means mix and yield variances will be calculated at revised standard price thank you o much
Hi John
I’ve been using lots of your F5/PM lectures to revise the technical content of the SBL exam.
Do you know if we need to be able to calculate mix and yield variances for the SBL exam and whether we need to be able to calculate Learning Curve effects for the SBL exam?
I used to feel very comfortable with these years, but it’s been two years since studying these papers and it’s very rusty now?
Thank you
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