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Is the solution correct?
Given BEDSHEET PILLOW
SQ 2 sq.meter 0.5sq.meter
SP $5 $5
AQ 248000sq.meter 95000sq.meterWorkings: 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 180000unitsCalculation 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=495000120000(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=57000096000(F) 24000(F)
Total material usage operational variance:120000(F)
They have done it differently so I want to know if it is correct too.As you have said different method provides different answer.
It 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?)
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