• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exam Results

Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>

Variances

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

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • June 11, 2021 at 5:56 am #624593
    xyzc
    Participant
    • Topics: 413
    • Replies: 175
    • ☆☆☆☆

    A company made a product called Bark. Bark had a standard direct material cost in the budget of 2.5 kg of material x at $4 per kg = $10 per unit.

    The average market price for material x during the period was 5 per kg, and it was decided to revise the material standard cost to allow for this.

    During the period 8000 units of Bark were manufactured. They required 22000 kg of material x which cost 123000.

    What is the revised standard card? At the back of the book it has been given as 4kg at 5.50 =22
    but I don’t understand how it has been calculated. From where do the figures 5.50 and 4kg come from?

    Another question that has been asked is to calculate the adverse material usage operational variance. How would this variance be calculated when there is no revised material usage figure given?

    June 11, 2021 at 9:12 am #624630
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54702
    • ☆☆☆☆☆

    You are obviously referring to the question in the BPP Revision Kit.
    The revised standard cost is not 4kg at $5.50 per kg – this is a typing error by BPP.

    The revised standard cost is 2.5kg at $5 per kg, and these are the figures that have been used in the answers (and the answers are all correct).

    If there is no revised material usage variance (and there isn’t in this question) then there is no planning variance and all of the variance is an operational variance.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • John Moffat on Linear Programming – Spare capacity and Shadow prices – ACCA Performance Management (PM)
  • John Moffat on The Statement of Financial Position and Income Statement (part d)
  • Salexy on Linear Programming – Spare capacity and Shadow prices – ACCA Performance Management (PM)
  • omerbasheer on The Statement of Financial Position and Income Statement (part d)
  • Kim Smith on AA Chapter 9 Questions

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in