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Hi,
Question with solution:
https://app.box.com/s/afpbna4im1v0ma3chkzngq95z05t6v9oI really don’t understand why they chose SQ instead of RSQ – why exactly for RSQ they used standard input for one unit (0.5kg/unit) instead of the *revised* standard input for one unit (0.75kg/unit).
I instead did RSQ=0.75kg/unit*3400=2550kg so RSQ*RSP=2550kg*$0.76/kg=$1938 and AQ*RSP=2550kg*$0.76/kg=$1938 so nil variance, which wasn’t right… Thanks 🙂Hi – Ive left this until last because before I said there was another error in the question – Ive taken advice from John ( who owns this site & did our P1 videos).
He is in agreement – yes you are right with this one too – its an error in the question – there is a zero operational usage variance….
That was honestly not the answer I wanted to give you – to blame a book error but yes John agrees…Its a mistake in the question…
Your formulae that you stated is correct…
Hope that helps….
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