• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Bassic variances

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Bassic variances

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • December 9, 2021 at 6:04 pm #643521
    Natasha1996
    Participant
    • Topics: 41
    • Replies: 25
    • ☆☆

    Are these all correct statements regarding basic variance (chap 13 example 1)?

    1) Budget cost is the total cost that we expect to happen and it is calculated as:

    Budget cost = Budgeted Production units x Standard rate
    $591600 = 8700 x $68

    Is it correct that total budget cost is also called total standard cost (they mean same)?

    2) Standard cost is the per-unit cost that we expect to happen which will be used to compare with actual results at the year-end and it is calculated as:

    Standard cost = Total Budgeted cost / Total Budgeted Production
    Standard cost = $591600 / 8700

    Is it correct that standard cost per unit is also called standard cost per unit (they mean same)?

    3) Actual cost is the total actual cost incurred at the year-end and it is calculated as:

    Actual cost = Actual Production units x Standard rate
    –605200—-=———–8900—————-x———$68

    4) In all the basic variances we compare the actual cost with standard cost with actual production to see the variance at the year-end.

    Actual costs———–605200
    Standard costs——-591600
    Total variance——–$13600

    Sorry to ask again but I was confused. Please don’t mind 🙂

    December 10, 2021 at 8:41 am #643666
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    That all seems to be correct 🙂

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • adityachaudhry on Discounted cash flow techniques (part 3) – ACCA (AFM) lectures
  • nuripamir on ACCA Administrative Review
  • Jherddie on CIMA E3 Chapter 8 Test
  • umangkumbhat on What is Assurance? – ACCA Audit and Assurance (AA)
  • ahmadhoney on How to register with ACCA?

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in