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August 22, 2020 at 4:42 am
I hope you are good, I watched your nice lecture but still have a question in regards to quantity variance for material and efficiency variance for labour for example let’s take efficiency variance as an example, you calculated the efficiency variance in units it was 400Hours this is ok but why did you multiply400Hours by the standard cost per Hour why didn’t use the actual cost per Hour?
John Moffat says
August 22, 2020 at 8:26 am
Because we want to know first the effect of just the hours changing. Then for the rate variance we look at the effect of the rate changing.
August 22, 2020 at 6:50 pm
Thank you so much I get you.
August 23, 2020 at 9:06 am
You are welcome 🙂
June 2, 2020 at 6:36 pm
hi sir I do not understand how fixed overhead volume variance is 3000 favourable. i listened your lecture but could not get it. could you please set it out in writting. thanks sir
May 20, 2020 at 11:35 am
sir,i calculated the variable overhead variance like this.please tell me whether it is the right way or not?Thanks in advance
actual variable overheads 87,348 less: actual at standard rate 89,000 (8900*5*2) =1652F
May 20, 2020 at 4:41 pm
That is correct and is what I do in the lecture! However that is just the total variable overhead variance and in the exam you can be asked to analyse it (as I do in my lectures).
November 15, 2018 at 9:34 am
Quick question we manufactured 8900 units at 5hrs per unit at cost of $5 per labour hour which means the standard labour cost should be 8900*5=44500hrs*$5=$222500 how come you are getting total labour hours of 45400?
November 15, 2018 at 4:06 pm
The question says that the actual labour hours paid were 45,400, and it is the actual hours paid that we use when calculating the rate of. pay variance.
November 7, 2018 at 9:20 am
October 19, 2018 at 5:26 pm
dear sir why are we taking actual hours worked rather than paid in variable expenditure variance? is the reason because expense is incurred while labour worked.
October 5, 2018 at 10:04 pm
Can I find the list of formulas anywhere for the variances?
October 6, 2018 at 11:44 am
No. All the rules are explained in the lectures – better then to write the formulae down yourself 🙂
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