[rahul6342]

Thanks to Opentuition and BPP Study & Revision Kit, I passed in first sitting with 79%.. OMG I still can’t believe but should give the credit to Management Accounting being my favorite subject.

[rahul6342]

qwert443 wrote:Hi,
In the question concerning coal I have calculated the below variances as someone stated above:

Exactly , that’s how I double checked .. and in discussion gave the credit to manager for saving $110F total of both operational variance

[rahul6342]

legendary wrote:

rahul6342 wrote:I think the material usage planning variance was the trips were increased from 150 to 170 per month by the board of directors and the manager was NOT part of the board so this was out of his control . So 20 trips * 2 tonnes per trip = 40 tonnes at $40 per tonne = 1600 Adverse is what I got

My total usage variance was 1000 A, Planning 1600A and operational 600F..

[rahul6342]

I think the material usage planning variance was the trips were increased from 150 to 170 per month by the board of directors and the manager was NOT part of the board so this was out of his control . So 20 trips * 2 tonnes per trip = 40 tonnes at $40 per tonne = 1600 Adverse is what I got

[rahul6342]

I had the same question. I used the logic that if demand is elastic and price changes by a percentage then demand will change by a percentage more than price.
So here the price changed by 10% ($2 to $2.2) so demand will change more than 10%, if we take 10% atleast then demand will change to 450 (500 Less 10%). It means less than 450 and at a selling price of $2.2 *450 = $990, revenue will be less than 1000

Hope i was right.

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