PEV Dec 06

Hi
Please can sum 1 look at section 1 task 1 b viii the model answer is 210 adverse but i'm sure it should be favourable, does any one agree??
Thanks xx
Please can sum 1 look at section 1 task 1 b viii the model answer is 210 adverse but i'm sure it should be favourable, does any one agree??
Thanks xx
Comments
It is right i am afraid! I always get confused with the capacity as A or F as well, a good tip is the capacity + efficiency = Volume, so in this case it has too be 210 Adverse.
Hope that helps!
Chris
It is usually the Fixed Variances where the mistakes happen with me! Fixed Overhead expenditure is easy, so if you get Volume - Capacity + Efficiency they should be right!
If you cant find the problem don't panic! Your marked on everything you do so if you have just got one formula wrong it's not the end of the world.
Chris
no not a clue lol :thumbup1:
For the Fixed Overhead i do
FO Expenditure V = Budget - Actual
FO Volume V = Standard for A Output - Budgeted
FO Efficiency V = Standard for A Output - Actual
FO Capacity V = Acutal - Budgeted
Volume = Efficiency + Capacity.
Just put the Volume in the reconciliation.
But as i dont know what you were asking not sure if that helps!!! :thumbdown:
My tutor has told me to put the efficiency and capacity variances in the reconciliation and not use the Volume - Would the examiner give the same marks whichever was included?