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MA

Variance Analysis (part 5) - ACCA Management Accounting (MA)

VIVA Subject Guide
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5 Comments

  1. Davies Courage
    Good Day John

    I have a question


    Eg
    D.Material 2tonnes @k5 per tonne

    Actual production and sold 3000tonnes

    Actual results:
    D material bought and used 3400tonnes

    Required
    Calculate material usage variance

    I understand from the questions you did in the open tuition on variance where standard material usage was in kgs/unit
    and multiply units produced..to get the standard material usage in kgs..


    Your response will be highly appreciated sir
  2. John MoffatTutor
    In future please ask this kind of question in the Ask the Tutor Forum and not as a comment on a lecture.

    Where did you find this question, because as you have typed it, it doesn't really make much sense. Given that the first line suggests that this is the standard cost per unit, then you really need to know how many units were actually sold.
  3. Richard
    Hi John, when using marginal costing why did the change in variance not balance out like when doing absorption costing? When using marginal costing the sales volume variance changed by £6000 and the volume variance by £3000. Where is the remaining £3000 now?
  4. ANONYMOUS
    hello John ,thanks for the great lectures,however, i can see in the Acca syllabus about "reconcile budgeted profit with actual profit" .i cannot find this in the lectures . isn't it something examinable?
  5. John MoffatTutor
    I show in the very first lecture on variances how the variances explain the difference between the actual profit and the budgeted profit. This is what is meant by reconciling the two.

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