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In this question a iv I got 20000 fav coz revised usage is higher than actual but the answer in bpp says adv …plz explain…
For pillow…
I didn’t understand to their working as for pillow in actual they used bed …it’s confusingThe BPP answer is very strange and I am not sure what they have done!! I have the examiners original answer, which is as follows:
For the operational variance we compare the actual cotton used with the standard usage for the actual production.
So for bed sheets they actually used 248,000 sq metres. For production of 120,000 units they should have used 120,000 x 2 = 240,000 sq metres. So they used 8,000 sq metres more than they should have and therefore the variance is 8,000 x $5 = $40,000 adverse.
For pillows, they actually used 95,000 sq metres. For production of 180,000 units they should have used 180,000 x 0.5 x 1.1 = 99,000 sq metres. So they used less that they should have and therefore the variance is 4,000 x $5 = $20,000 favourable.
Maybe if you check the BBP website using the code in the Revision Kit they will have an errata sheet 🙂
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