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December 2013 paper

QQ10y ago
Dear Sir Could you please explain to me how do I get the figures for Pillow cases for material usage planning variance: std quantity is 90000 and revised quantity is £99000? Revised quantity for Sheets, 240000? Many thanks.
John MoffatJohn MoffatTutor10y ago#1
The original standard for pillow cases was 0.5 sq m. So for 180,000 cases that means 90,000 sq m. The question said that the change in design needed 10% more, so 90,000 + 10% = 99,000 sq m. Sheets need 2 sq m, so for 120,000 they need 240,000 sq m. There is no mention of this changing and so the standard remains at 2 sq m..
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