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BPP KIT QUESTION 153

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › BPP KIT QUESTION 153

  • This topic has 3 replies, 2 voices, and was last updated 8 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • August 22, 2017 at 8:03 pm #403065
    Avatarmika84
    Member
    • Topics: 99
    • Replies: 149
    • ☆☆☆

    Could you help please with this question.As far as i understand, $1475 mix variance should be Favourable, but the answer is Adverse.

    August 23, 2017 at 8:03 am #403111
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54838
    • ☆☆☆☆☆

    It is adverse, and I think your confusion might be because you are treating them as if they were costs when in fact they are sales.

    So since the profit from sales at the actual mix is less than the profit from total sales at standard mix, then the variance is adverse.

    August 23, 2017 at 11:23 am #403133
    Avatarmika84
    Member
    • Topics: 99
    • Replies: 149
    • ☆☆☆

    Yes, thats right, I counted them as costs…Thank you.

    August 23, 2017 at 3:53 pm #403174
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54838
    • ☆☆☆☆☆

    You are welcome 🙂

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