Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › bpp revision kit question 203 Secure Net part b
- This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
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- November 29, 2016 at 4:42 pm #352408
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.
November 29, 2016 at 5:33 pm #352428Everything you have done does appear to be correct 🙂
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