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bpp revision kit question 203 Secure Net part b

IInyoung9y ago
Dear sir, I am well aware of the fact that there are 2 ways of calculating this, and the end figure will be different according to which way I have taken. I think I followed your way from the lecture, so just wanted to know whether or not what I have done is right. 1.planning price variance ($4*0.2)*0.035*100,000=$2800(A) where 4*0.2 is the change in price adversely in planning, 0.035 is the actual usage per card, and 100,000 is the total actual production/sales. 2. planning usage variance (standard cost $4*(changed usage adversely in planning 0.040kg*0.05)*100,000units = $800(A) therefore, total planning variance is $3600 (A) 3. Operational price variance (actual price$5.25 - revised price$4.8)*0.035kg * 100000 = $1575 (A) 4. Operational usage variance standard price $4 * (revised usage 0.042kg-actual usage0.035kg)*100000= $2800 (F) therefore, total operational variance $1225(F). hope to hearing from you about whether I got it right or not, and if I did not get it right, please explain to me where I got it wrong. best regards.
John MoffatJohn MoffatTutor9y ago#1
Everything you have done does appear to be correct :-)
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