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variance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › variance

  • This topic has 1 reply, 2 voices, and was last updated 13 years ago by John Moffat.
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  • October 27, 2012 at 12:46 pm #54895
    daberechi
    Member
    • Topics: 14
    • Replies: 10
    • ☆

    in the same question f5 dec 2011.in material mix,how did they get these figure under actual quanty std mix.honey $2066.67 sugar 1550 and syrup $1033.33.please sir bear with me i want to no it,

    October 28, 2012 at 2:53 pm #106095
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54831
    • ☆☆☆☆☆

    According to the cost card, there should be 20 grams of honey out of a total of (20 + 15 + 10 = ) 45 grams for each unit.

    The actual total usage of material was 2,200 + 1,400 + 1,050 = 4,650 kg.
    If the total had been used in the correct proportions (as per the cost card), then honey should be 20/45 of the total.
    So the actual quantity std mix for honey should be 20/45 x 4,650 = 2066.67
    (similarly, sugar should be 15/45 x 4650; and syrup should be 10/45 x 4,650)

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