Is the solution correct?
Given BEDSHEET PILLOW
SQ 2 sq.meter 0.5sq.meter
SP $5 $5
AQ 248000sq.meter 95000sq.meter
Workings: BEDSHEET PILLOW
RSQ- 10% increase = 2*1.1=2.2 =0.5*1.1=0.55
RSP-20%increase =5*1.2=$6 =5*1.2=$6
Actual production 120000 units 180000units
Calculation of material usage planning variance
BEDSHEET PILLOW
SQSP 2*120000*5=1200000 0.5*180000*5=450000
RSQSP 2.2*120000*5=1320000 0.55*180000*5=495000
120000(A) 45000(A)
Total planning usage variance: 165000(A)
Calculation of material usage operational variance
BEDSHEET PILLOW
RSQRSP 2.2*120000*6=1584000 0.55*180000*6=594000
AQRSP 248000*6=1488000 95000*6=570000
96000(F) 24000(F)
Total material usage operational variance:120000(F)
Ask the Tutor ACCA PM
BED CO DEC 2013
10y ago#1Surely you can check yourself to the examiners answer?
They have done it differently so I want to know if it is correct too.As you have said different method provides different answer.
10y ago#3It seems OK.
(But you really should not be using old books because of syllabus changes. I assume your books are recent enough so as to contain lots of MCQ's to practice?)
okay. Thank you sir
10y ago#5You are welcome :-)
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