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Sir ,i saw your lectures ,just have one confusion.It will be great if u can clear that.what concept do we use for judging favourable and adverse while we are comparing efficency variance using revised cost and original and the operating variance using actual and revised cost.I mean which one we consider standard as we do in normal variances when there is only standard and actual.Hope u are able to understand my problem.for instance, in your second lecture of labour variance (planning)we have 180000-192000 hrs=12000 hrs*48000F.Thanks in advance.
It is the same logic as we use in all variance calculations. If the actual hours are less than standard hours then they will be saving money and therefore the variance is favourable because spending less money will mean more profit.
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