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Hi sir,
I am doing a december 2012 qn no 2 truffle co.
the part b of this qn is confusing me
The formula i am using to calculate the labour rate planning variance is:-
Revised standard hour*revised standard rate= 46740
Revised standard hour*standard rate= 49200I used 10250* 0.8=8200 As my revised standard hour because in the 3rd paragraph they said that the process will get 20% slower due to the new ingredient mix i am not sure if i am right
because when i checked the examiners suggested answer they used the labour rate planning variance as (revised rate-standard rate)*actual hours so in this formula the revised standard hours is not used.
Basically i am not sure if the formula i am using is correct and if the revised standard hours i calculated is correct i am sure about my revised standard rate because its the same with the way i calculated it..Please sir help me and guide me..
I dont know where i am going wrong..:[There are two ways of calculating planning and operational variances. Both ways get full marks in the exam even though they give different answers.
The previous examiner preferred one way, but the current examiner prefers the other way (which is actually easier).
My free lectures go through the rules for the way that the current examiner prefers.
Hi sir.
Thank you so much i will surely go through your lecture to check the other way..
But could you please tell me if the standard hours i calculated is correct (8200 hours)..
Thank you once again for advising me..:D
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