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Hi john sir, plz help me with the following question:
Q.1 John sir, when we find out material planning price variance we use the following formula:
Std price for revised usage
Revised price for revised usage
By revised usage mean ( revise std quantity of material on actual output). Is this formula correct?
Q.2 John sir in some past paper solutions examiner is using some time actual usage and some time revised. it is confusing me. guide me about this please sir.
sir in june 13 variances how the figure sale price operational 23360F and 54680 A calculated?
aisha: It is confusing because there are two different ways of calculating planning and operational variances, which give different answers (and the examiner accepts both ways!).
Our lectures do it one way, which is the more sensible way and the way that all of the Study Texts used to do it.
The current examiner does it an easier way and the new textbooks have changed to show it this way.
If you can be patient until next week then I am going to re-record our lecture which I think you will find easier.
sooraj:
The examiner has shown the workings in her answer. If you say which part of them is causing the problem then I will explain.
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