Free ACCA & CIMA online courses from OpenTuition
Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams
December 2023 - June 2024 exams: Get your discount code >>
November 3, 2023 at 2:18 am
Sir John, for Q1, the sales price variance. Kindly explain, please. Thanks very much
John Moffat says
November 3, 2023 at 8:21 am
It is the actual sales multiplied by the difference between the actual selling price and the budgeted selling price. 10,500 x (19.50 – 20.00) = 5,250 adverse.
This is all explained in my free lectures on variances.
October 8, 2023 at 5:37 pm
Dear John, Regarding Q3)
When Marginal Costing is Used, Fixed Production Costs are treated as Period Costs & Is Not Accounted For in the Production Cost Card, Hence, Avoiding Over/Under Absorption When Using Marginal Costing.
So Why would there be any Variance in Fixed Production Overheads when Marginal Costing is Used? Shouldn’t the Answer to Question 3 be: “True”?
October 9, 2023 at 7:23 am
With marginal costing the profit is the contribution less the fixed overheads. If the total fixed overheads are different from the budgeted total then the profit will also be different.
I specifically explain this in the last of the variance lectures.
October 9, 2023 at 7:34 pm
Oh my bad,
Thank You for Recapitulating it! 🙂
September 22, 2020 at 6:53 pm
sir i dont understand question 5 please explain in simple calculation
September 23, 2020 at 8:00 am
The question says that the variance is 2% of budget. Therefore the budget must be 1,250 / 2% = 62,500.
The variance is 1,250 adverse, so the actual fixed overheads are 1,250 less than budget. 62,500 – 1,250 = 61,250.
December 25, 2021 at 12:42 pm
1250 favorablely ,not adverse
July 20, 2020 at 8:13 pm
one few of the chapters in which got 100 % in the test. You taught amazingly. You are a Super Teacher !
April 21, 2019 at 10:35 am
can you please give me a more detailed explanation for the last question? I don’t understand it fully.
February 5, 2020 at 9:19 am
suppose, budgeted fix O/H= 100x then , actual O/H will be 98x fix O/H exp = budgeted-actual 1250=100x-98x x=625
therefore, actual O/H exp=98*625=61250
June 8, 2020 at 2:09 am
i think so too
June 8, 2020 at 10:08 am
You must be logged in to post a comment.