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For the material usage aspect, how did they get 3840 kgs for the budgeted amount?
3840kg was not the budgeted amount.
When calculating materials usage variances we compare the actual usage with the standard usage for the actual production. The actual production is 960 units, the standard usage (from the cost card) is 4kg per unit. So in total they should have used 960 x 4 = 3840 kgs.
(You can watch a lecture of me working through the whole of this question – you will find it on this page: https://opentuition.com/acca/f5/f5-revision-kit/ )
Hi John,
Is there the lecture where you explain this question? Because I’m reviewing the past papers and now I’m on June 2012 and I have a question regarding Lock co and Sauce Co , I would like to see how is the approach towards them.
Thanx for the reply!
Oh sorry! I just recall that time serial calculations will not be asked anymore, s then lets forget about Sauce Co. right? Then my concern is just towards Lock co. Thank you!
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