In Example 4, when calculate Actual profit, you said, that we use standard profit, but I can see that you used profit from actual figures. Am I missing something? 馃檪

In the lecture notes, Ch 14, answer to ex 4, Sales mix variance – I belive there mistype in the mix variance table heading – instead of “Actual selling price” in the second column, I would use “Standard profit per unit”.

One observation is made is that all other factors would remain the same between the 2 sets while calculating variances. For example, for Mix variance, only the mix would change and the total units would be the same. For Sales quantity variance, the total quantities would change but the Mix and the way of calculating Profit (Standard) would remain the same.

Is this correct?

Cause, I feel learning the rules is a bit tough as we have a lot of variances. May be I can cross check while solving the problems by looing at this? thus ensuring nothing apart from the attribute which we want to know the variance for, has changed when we set up the tables.

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ewelinagabiec says

Hello Sir,

In Example 4, when calculate Actual profit, you said, that we use standard profit, but I can see that you used profit from actual figures. Am I missing something? 馃檪

Thank you!

ewelinagabiec says

Sorry, I see now. It’s standard cost. Price is actual.

John Moffat says

That is correct 馃檪

ivotabacek says

Dear Mr Moffat,

thank you for all lectures.

In the lecture notes, Ch 14, answer to ex 4, Sales mix variance – I belive there mistype in the mix variance table heading – instead of “Actual selling price” in the second column, I would use “Standard profit per unit”.

Thank you.

John Moffat says

You re correct and I will have it corrected – thank you for noticing 馃檪

chetucrs says

Hi Sir,

One observation is made is that all other factors would remain the same between the 2 sets while calculating variances. For example, for Mix variance, only the mix would change and the total units would be the same.

For Sales quantity variance, the total quantities would change but the Mix and the way of calculating Profit (Standard) would remain the same.

Is this correct?

Cause, I feel learning the rules is a bit tough as we have a lot of variances. May be I can cross check while solving the problems by looing at this? thus ensuring nothing apart from the attribute which we want to know the variance for, has changed when we set up the tables.

John Moffat says

That is exactly what I explain in my lectures!

I assume that you have watched the lectures?

If you have any problems then do ask in the Ask the Tutor Forum.

chetucrs says

Yes, I have watched all of them. Thank you!

John Moffat says

You are welcome 馃檪