Splitting Variances - MCV

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
<BR>I'm hoping that someone can help me. We went through splitting variances at college last night - it's great isn't it, two days before the exam and we learn this!!<BR><BR>We did a couple of examples which were using index numbers and it seemed fine. I am just sat here trying to go through December 1999's paper and the splitting variance question is on splitting the labour efficiency variance and has nothing to do with index numbers. I'm finding it really hard to relate what we did last night to this question!<BR><BR>I'm looking for a little help as I'm really struggling with this!<BR><BR>Thanks<BR>Saz

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Splitting Variances - MCV

    Hi Saz,<BR>I am having difficultly in getting my head around them too.<BR>I found a feature written by John Watts, it's entitled Material and labour variances made easy and it covers sub divivding material variance, well a little anyway.<BR>I found in the archive section, hope it helps and good luck for tomorrow!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Splitting Variances - MCV

    Hi Saz<BR><BR>I will try to help but I haven't worked this one myself so here goes...<BR><BR>First work out standard cost of providing 3 meals per guest ( I think this is 1.1 b) iv), then work out the standard cost of providing 4 meals - (648 divided by 12 x 4 meals x 7 days). Are you still with me???<BR><BR>The difference between these two is the variance due to guests taking 4 meals and not 3<BR><BR>The variance due to other reasons is the difference between the standard cost of standard hours for 4 meals - see above, and the standard cost of actual hours which you will have calculated in 1.1 b iv0<BR><BR>I hope this makes sense to you and Good Luck for tomorrow.<BR><BR><BR>

Categories

Privacy Policy