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Good day Sir,
If a question has both fixed and variable over head standard unit cost and we are asked to find over head efficiency which is used variable or fixed when it isn’t stated?
Also is material mix interrelated to material yield?
Thank you.
In answer to your first question, if the question is marginal costing then it can only relate to variable overheads (because there is no efficiency variance for fixed overheads if it is marginal costing). If it is absorption costing, then either you will be told in the question whether they want it for variable or for fixed overheads; or there will only be enough information in the question to be able to calculate one of them.
With regard to your second question: it depends what you mean by ‘inter-related’ the mix variance and the yield variance are the analysis of the overall usage variance.
I suggest that you watch my free lectures on variances, because everything is explained in the lectures. The lectures are a complete free course for Paper F5 and cover everything needed to be able to pass the exam well.
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Sir
What’s the difference between standard and buget,or these both are same.?..if in standard casting quastion comes as budgeted data,enough we consider that as standard data ?
Thank you
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