Skip to content

Ask the Tutor ACCA PM

BBP revision kit - Q275 - Clear Co - variances

SScarlett2y ago
Hi, I am confused on question Q275 in the BPP revision kit, on the (c) part of the question, they have asked us use relevant calculations to comment on the sales performance of Clear Co. There is a working for selling price variance = (actual price - selling price) x actual qty I can get to the answer of $413,000 for the "RLE treatment" (2900 - 3000) x 4130 = $413,000 (a). However I don't understand how it's been calculated for the "ICL treatment", I would have thought it was (3400 - 3650) x 960 = $240,000 but the answer has been given as $900,000. Am I getting it wrong? Thanks :)
IAW3005IAW3005Tutor2y ago#1
It is just a typo 240,000 if you look at the total 1,140,000 Which is 900,000A + 240,000 A
SScarlett2y ago#2
okay thanks!
IAW3005IAW3005Tutor2y ago#3
Your welcome Hope I put you mind at rest
Sign into reply to this topic.