- April 28, 2020 at 8:58 am
Question with solution:
I 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 🙂May 1, 2020 at 4:37 pm
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….May 1, 2020 at 4:49 pm
Thanks so much, really appreciate it 🙂May 2, 2020 at 2:18 pm
You’re welcome – any time 🙂
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