OpenTuition | ACCA | CIMA
Free ACCA and CIMA on line courses | Free ACCA, CIMA, FIA Notes, Lectures, Tests and Forums
Spread the word
If you have benefited from our materials, please spread the word so more students can benefit.
To help us keep materials up to do and add new content you can also donate
July 21, 2020 at 11:27 am
I understand whole process of $3000 (F), but wonder why capacity variance means “getting more Labour”? We use the standard hours for real production (8700×5), how does it connected with hiring more Labour? Sir, please answer question if you have times. Thanks a lot
John Moffat says
July 21, 2020 at 2:07 pm
But I do explain this in the lecture.
Increasing the volume (i.e. the number of units we are capable of making) is done by either getting more labour hours than we budgeted on having or on having the workers be more efficient (i.e. work faster). (Or, of course, a combination of both).
July 22, 2020 at 4:43 am
Sir, thank so much for patient explaining. I got that now.
July 22, 2020 at 7:10 am
You are welcome 🙂
July 19, 2020 at 6:08 am
Thanks so much John. Have about 10 days to sit exams but your lectures has enlightened my understanding on standard and variance analysis. Be blessed
July 19, 2020 at 9:21 am
Thank you for your comment 🙂
June 8, 2020 at 10:47 pm
where did we get this 3574 adverse as expenditure variance?
June 9, 2020 at 9:50 am
It is the difference between the actual fixed overheads (134,074) and the original budgeted fixed overheads (130,500). (I assume that you have printed out the free lecture notes and have them in front of you.)
May 9, 2020 at 3:15 pm
I’ve understood that why $3000 is Favourable you can see:
difference in fixed OH of fixed budget and flexed budget = $3000 difference in fixed OH of flexed budget and Actual = $574 it means that the actual results was charged less the budget => 200 more units with standard cost fixed OH is $3000 (F)
January 10, 2020 at 7:20 am
Thank you very much for this lecture… I am more at ease in tackling variance questions…Thanks to you sir…
January 10, 2020 at 8:50 am
November 29, 2019 at 7:44 pm
Thank you so much sir, I am a few days befor the exam and was panicking but your lecture on variance analysis has helped me to grasp the key areas of the syllabus without extensive reading of the text.
Very clear and concise explanations!
You must be logged in to post a comment.