[ilievas]

Hello,

I am really confused as to why for the labour planning and operational variances in the solutions they take the following formula:

labour rate planning variance:
(revised rate – std rate) x actual hours paid

Why is that? I thought that for planning – we replace the Actual figure with the revised figure, so basically it is not actual hours but instead revised hours???

Could you please help me out

Thank you!

[ilievas]

Hello,

I took the question from the workbook of BPP for FY 2021. Originally the currency is GBR, i just took EUR by accident.

[ilievas]

got it as well!

thanks

[ilievas]

thank you for the detailed explanation – this was helpful, i will try to apply it next time.

I wish you lots of luck and success to your exams 🙂

[ilievas]

hi there!

and thank you for the quick response!
I am more afraid that i do not get the concept of how we calculate the RE at acquisition..
would you please assist me in getting the logic behind the steps?

My initial idea was that we calculate:

RE b/f + revaluation gains – dividends paid = RE c/f
however in this case i believe we have no dividends and simply replacing the revaluation gain and RE c/f does not bring me to the answer..

Thanks!

[ilievas]

Hello!
Could you please explain the logic behind this solution? I cant seem to wrap my head around it

Thank you!

[Author]

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