Variances

[Tae-Jeah]

Hi every one I am presently studying Standard costing and Variances (regular, mix and yield and planning and operational).

If anyone reaches variances and would like to have a discussion we can interact and strengthen each others weak area in variances.

It is said that the discussion element are the areas that we students are weak in so maybe we can have an interactive discussion.

[Dazy]

Hello everyone,

I think Tae-Jeah is right.......

Rather than studing alone, discussion will enhance your understanding of the various difficult topics.

In case of any doubt, just ask on the forum.

Thanks

[Chop]

Variances yuk yuk yuk, I need help too.

Shall we discuss?

[nardbenn]

Hello all

I believe variances are an important topic which every student should understand before an exam.

The idea of discussing is a very good one.Learning in isolation when facing some challenges in understanding variances is a minus to passing F5.

Lets discuss,share and compare notes, Iam doing variances now.

Warm Regards to all.

[bakhmetova]

hello everybody, also reached variances, lets discuss. may be we will take some question from past papers and look it through?

[Helly]

hello everybody, also reached variances, lets discuss. may be we will take some question from past papers and look it through?

Yes, really good idea.

Lets do it, It will be very useful for sure.
We will discuss here in case anybody find any difficulty in getting the correct answers.

Thank you buddy !

[shunmas]

Yes everyone is ready...so let me break the ice by asking a shortcut to variances, i mean calculation aspect. Also, I was wondering, Getthrough does not give any tips before exams, what about that?

Thanks

[bakhmetova]

so here is an example from study book

the standard material cost of a unit of a product is
Material X 2kg 3$ 6$
Material Y 1 kg 2$ 2$
The actual production was 5000 units and the material used were:
Material X 9900 kg costing 27000 $
Material Y 5300 kg costing 11000$
Required: calculate the total materials cost variance, material price variance, material usage variance, mix variance and yeld variance

Solution
Total material cost variance
St. cost of act. prod 5000 units*8$=40000$
Act. cost of act. prod 27000+11000=38000
2000 F

AQAMAP AQAMSP AQSMSP SQSMSP
kg $ kg $ kg $ kg $
X 9900 27000 9900 29700 10133 30399 10000 30000
Y 5300 11000 5300 10600 5067 10134 5000 10000
15200 38000 15200 40300 15200 40533 15000 40000
Price variance 2300 F (38000-40300)
Mix variance 233$ F (40300-40533)
Yeld variance 533 A (40533-40000)
what i could not catch how is fugures for AQSMSP are calculated.
can anybody help?