Forums › ACCA Forums › ACCA BT Business and Technology Forums › Question about advanced variances
- This topic has 1 reply, 1 voice, and was last updated 9 years ago by elmadrilene10.
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- December 10, 2015 at 3:44 pm #290321
Hi,
I have a question about the correction of an exercise if you could help me thank you 🙂
We saw in class these formulas for the material variances:
SQSP This two ones for the usage with SQ: standard quantity, SP: std price…
AQSP
AQAP This two ones for the priceso for the planning which is between the standard and the revised:
SQSP
RevisedStandardQuantitySP (RSQSP)
RevisedStandardQuantityRevisedStandardPrice (RSQRSP)And for the operational:
RSQRSP
AQRSP
AQAP with AQ: actual quantity and AP: actual priceSo my question is: I do not understand in the correction why:
For the planning variance about the PRICE: they do not use the RSQ (RevisedStandardQuantity) instead of the AQ (actual quantity) which would do 8kg*1,400u=11,200kg and not 11,000
For the operational variance about the USAGE: they do not use the RSP (RevisedStandardPrice) instead of the SP (standard price) which is $3.80 and not $4.
Thank you very much
December 10, 2015 at 3:46 pm #290324Sorry the links are https://hpics.li/68e3c4f and https://hpics.li/585567d
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