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March 7, 2022 at 8:09 am
SQ*SP (Std Qty x Std Price)
RSQ*SP (Revised Std Qty x Std Price)
AQ*SP (Actual Qty x Std Price)
TIPS: Always @ Std Price – because we are comparing Qty usage here
DO NOT FORGET: We always calculate Std Qty @ ACTUAL OUTPUT
No need to thank, cuz sharing is caring ?
BUT do understand the logic of Mr John before using this shortcut.
January 25, 2022 at 8:22 am
Hey Sir, hope you’re well. For the planning and operational variances, if there were a choice between actual hours paid vs actual hours worked which one should we choose?
John Moffat says
January 25, 2022 at 3:12 pm
It depends on what variances were being asked for. However with planning and operating variances then almost certainly hour paid and hours worked will be the same (and there will not be any idle time).
November 22, 2021 at 5:11 am
Why don’t I find a section included for the planning and operational variances for sales – Market share variance (operational) and Market size variance (planning) ?
November 21, 2018 at 9:10 am
John, am I correct in thinking that the budgeted production levels are irrelevent in examples 1 & 2 of this topic?
Thanks for all these lectures by the way, they’re helpful for a bloke from Manchester studying in Australia!
November 22, 2018 at 8:29 am
Yes, you are correct.
Just as with basic variances in the previous chapter, the expense variances are comparing actual costs with standard costs for the actual production (not the budgeted production).
November 22, 2018 at 8:54 am
That’s a great way of putting it John cheers.
I don’t suppose you have another succinct way of explaining efficiency/usage variances by any chance?
November 8, 2018 at 7:12 am
Thanks John. Well explained. Planning and operational variances are calculated for labour and materials making comparisons between the original budget and the revised budget.
November 8, 2018 at 7:14 am
Planning = original budget Vs revised budget Operational = actual performance Vs revised budget
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