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Hi John,
I have attempted the qn but fail to get the ans for iv) material usage operational var. Please enlighten me. Thank you much.
Material usage :
Operational-actual vs revised
Bed sheet
m2
Actual 248000
Revised 240000
= 8000 * revised cost $6 = $48000Adverse(ans:$40000A)
Pillow cases
m2
Actual 95000
Revised 99000
= 4000 * revised cost $6 = $24000Fav(ans:$20000F)There are two ways of calculating planning and operational variances, which give different answers!
It depends on whether you use the revised standard cost or the original standard cost.
There is an argument for both, and the examiner allows either way (and states this in her answer as a note).Your calculations are fine and would get full marks.
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