Hi,
Can anyone help?
I am looking at the variances section for paper F5 in December.
For example-the labour rate variance is calculated as (Actual Rate-Standard Rate) x Actual Hours.
I have seen example questions were it is calculated as above but in the December 2010 paper-question 1a(iii) it is calculated as (Standard Rate-Actual Rate) x Actual Hours (so the opposite way) this would obviously produce the opposite result of a favourable variance or an adverse variance.
I basically want to know-how do you know which way around it should be????
I am confused. Please help :)
Thank you
Steve18
Can anyone help?
I am looking at the variances section for paper F5 in December.
For example-the labour rate variance is calculated as (Actual Rate-Standard Rate) x Actual Hours.
I have seen example questions were it is calculated as above but in the December 2010 paper-question 1a(iii) it is calculated as (Standard Rate-Actual Rate) x Actual Hours (so the opposite way) this would obviously produce the opposite result of a favourable variance or an adverse variance.
I basically want to know-how do you know which way around it should be????
I am confused. Please help :)
Thank you
Steve18