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Hi Sir John Moffat,
I have a query about the question Lock Co from June/ 2012.
I don’t understand how they came to the Budgeted mix with 4/7 Power Lock, 3/7 Devil Lock.Budgeted mix for actual sales: 4/7 Power Lock 1040
3/7 Devil Lock 780
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1820.How they came to this 4/7 and 3/7?? It was actually not in the question but in the answer of BPP Kit is this!
Thank you for your answer.
But it is in the question.
The budget figures show sales of Power as 800 units out of a total of 1,400.
800/1400 = 4/7 (divide top and bottom by 200). By all means use 800/1400 x 1820, you don’t need to rewrite it as 4/7 x 1820.Hi John,
Just a question on the F5 specimen paper
5a
for the planning variance for rate 20500*0.5*1.20*12 = 147600
20500*0.5*1.20*11.40 =140220
which gives me a variance of 7380 F would this be correct?Yes – you are using the way that the previous examiner preferred, which gives different answers. The examiner accepts either way.
However the method in the specimen answer is the way the current examiner prefers and is the way all current study books (and our lectures) do it (which is easier anyway 🙂 )
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