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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Organic Bread Co.sept/Dec 15
sir in this question why there is no conversion of grams into kg while calculating usage variance .For instance, standard quantity of wheat flour for 950 units=0.45 /1000×950=0.4275 kg
450 grams = 450/1,000 = 0.45 kg
Therefore for 950 units the standard quantity is 950 x 0.45 = 427.5 kg.
I don’t know why you want to divide by 1,000 for a second time 🙂
Oh I thought 450 grams is for 1000 units
No – it is per unit.
(It would be very strange bread and remarkably cheap bread if it used so little flour for 1,000 loaves and only cost $1.34 for 1,000 loaves 🙂 🙂 )