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March 3, 2023 at 3:50 am
Is the total variance as same as the fixed over head variance?
John Moffat says
March 4, 2023 at 9:09 am
Yes it is.
March 21, 2022 at 3:14 am
why do we say it is adverse when we get 100 fewer despatches from the actual despatch? Does it not have to be more favorable to increase despatch?
November 4, 2021 at 12:30 pm
Hello sir, there is one point a concept that i don’t understand here,when u calculated for the total variance you based it on units meaning you took =120000/48000 But the when you moved to the expenditure variance you based the overheads on despatch meaning= 120000/2000,,,why didn’t you use like the same base for the variances ,like if we could calculate the total variance and base it on despatch too ,it will be, $60 (120000/2000) as the std price ,then multiply it by the no. of dispatches of actual to get the std overhead cost of $132000(60*2200)then we subtract the actual from std over head cost to get 6720(A)(126720-132000).
November 4, 2021 at 12:38 pm
November 4, 2021 at 2:01 pm
The total variance is (as with all variances) the difference between the actual total expenditure and the standard cost for the actual production.
When we come to analyse the reasons for the variance, it is exactly the same logic as when we analyse the labour variance (revised in the chapter on basic variances) except that instead of using hours worked and standard cost per hour, we are using number of despatched and the standard cost per despatch.
October 25, 2020 at 6:44 pm
There r no lecture available for Fix overhead expenditure. Efficinent and Capacity variance .
October 26, 2020 at 7:13 am
Yes there are!!!
They are included in the lectures on basic variances (although the basic variances are very rarely asked in Paper PM because they are revision from Paper MA).
April 14, 2019 at 6:18 am
Activity based budgeting is type of budget or method of budgeting? Thanks
April 14, 2019 at 10:00 am
A method of budgeting.
November 8, 2018 at 7:20 am
Thanks Sir. Well understood
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