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Example 6 of chap 14

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Example 6 of chap 14

  • This topic has 3 replies, 2 voices, and was last updated 7 years ago by John Moffat.
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  • February 14, 2018 at 7:05 pm #437286
    humai
    Participant
    • Topics: 757
    • Replies: 248
    • ☆☆☆☆☆

    Sir in example 6 of chap 14, when calculating total overhead variance for dispatching, the actual total cost will be actual number of dispatch multiply by actual cost per dispatch, right?

    February 15, 2018 at 6:56 am #437383
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    No – the actual cost is that given in the question of $126,720. That is what is actually spent.

    February 15, 2018 at 3:01 pm #437438
    humai
    Participant
    • Topics: 757
    • Replies: 248
    • ☆☆☆☆☆

    But suppose if it would not have been given in the question then we would have calculated it by actual number of dispatch multiply by actual cost per dispatch, right?

    February 15, 2018 at 4:17 pm #437452
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    Yes – that would be true. But it would be very surprising if the actual total cost was not given in the question 🙂

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