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Sir in study text of B.P.P, it has been mentioned that
1) When calculating the Material Price Planning Variance, the variance shall be converted into a total monetary amount by multiplying the material price planning variance per kg of material by the “actual quantity of material used”.
2) Similarly, labour rate planning variance is converted into total monetary amount by multiplying it by “Actual number of hours worked”.
Sir what if we have been provided with both
1) Actual units of material purchased and actual units of material consumed which are indeed different (In that case what shall i use to convert it into monetary amount)2) Actual hours paid for and actual hours worked (which are again different), what shall I use to convert it into monetary amount.
It is as you have quoted from the BPP text. The actual quantity of material used (i.e. consumed) and the actual labour hour worked.
Sir shouldn’t it be the Actual quantity of material purchased and actual labour hours paid for, because that’s what we usually use while calculating the basic Material Price Variance and Labour Rate Variance?
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