[patience88]

Which text wer you using ?l cant figure out how they calculated prices variances please help?

[patience88]

Hey john once again you said they made a mistake it was suppose to be 48000 multiplied by 3kgs bt why because 48000 represent bugeted sales yet the production is 159000kgs so tht we divide by 12 and get 1 month ofworth of production pls help me too much of confusion is running cause my question is why do we have to use budgeted sales figure instead of one mnth worth of production

[patience88]

Thankyou that saves it right have a great day?

[patience88]

Thanks john maybe my question was a little bit not clear l understand that production was 53000 units and that material usage we multiply by 3 to get 159000kgs bt now my problem is to get material puchase budget they are saying material x purchase budget 96000 divided by 12 add 159000 subtract 5000 equals 162000kgs then multiply by 4 now ‘m wondering wher is 96000 and 12 coming from for more enquery l got this question from practice revision kit for exams from february 2014 page 199 question number 30,1 please have a look thank you

[patience88]

Thanks john i dint realise it you just opened my brains bt also question 2 l dont understand how they got 100 units left thank you

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