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Sir, in above example to calculate the expenditure variances BPP answer has used the REVISED quantity of 3500 Kg. While we use the original std quantity.(O/t Chap 14 Exa 1)
My calculation for the above example is like below
Planning Variance = 4000 kg. x ($4.8 – $ 4) = 3200 (A)
Operational Variance = 4000 kg. x ($5.25 – $4.8) = 1800 (F)
whether my answer is correct or incorrect, if correct shall i do in exam like this, or i have to do it as shown in BPP ?
Please clarify Sir.
Thank you for your valuable time and support. 🙂
Our notes certainly do not use the original standard quantity!!!
They use the actual quantities for the expenditure variances, which is the way that the current examiner prefers.
The BPP Revision Kit does it the same way as our Lecture Notes and the current examiner – they also use the actual quantity (100,000 cards at an actual 35g = 3,500 kg). They do not use the revised quantity! (the revised quantity would be 42g per card – 40g + 5%).
You have used the original standard, which is wrong.
(I do hope that you are not using the lecture notes without watching the lectures. It is in the lectures that we explain and expand on the notes. They are notes to be used with the lectures.)
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