read carefully the question again..!!
the annual demand shud be for the finished product not the raw materials..! we compute EOQ for raw materials.. so u can only use weekly usage not monthly demand..!
regards
Menu
Costing
the answer given by punit tibrewal is perfect. u should interpret question properly.
Thank You Mr. Punit
Normal usage be taken as it is the qty which is decided to be used,
any deviation from Normal usage, is a variance and not be regarded for EOQ calculations.
Insti seconds my opinion, forge Padukas, refer module, Bible for CA students (Difficult to nderstand but fruitfull)
Thank you Mr. Aashish
NORMAL LENGA...ASHISH KALRA KE BOOK MEIN MATERIAL CHAPTER MEIN QUE NO-61
hi pl be clear yaar. dint understand
Dear Friends
go with monthly consumption * 12 because its more then near with figure comparision of Weekly normal consumption * 52 and monthly consumption is more reliable then normal weekly consumption
Thanks
Nitin Grover
hi.. am a final student appearing for Nov 09.. i have a doubt in costing.. culd sum1 help me out..
Super Computers manufactures and sells three related PC Models:
(1) PC – Sold mostly to college students
(2) Portable PC – Smaller version of PC positioned as home computer
(3) Super PC – Sold mostly to business executives.
Budgeted and actual data for 2003 as follows:
Budget for 2003
Selling price p.u..(Rs) Variable Cost p.u.(Rs) Contributionp.u.(Rs) Sales unit
PC 24,000 14,000 10,000 7,000
Portable PC 16,000 10,000 6,000 1,000
Super PC 1,00,000 60,000 40,000 2,000
Actual for 2003 .
Selling price Variable Cost Contribution Margin Sales
Rs./unit Rs. /unit Rs./unit Units.
PC 22,000 10,000 12,000 8,250
Portable PC 13,000 8,000 5,000 1,650
Super PC 70,000 50,000 20,000 1,100
Super computer derived its total unit sales budget for 2003 from the internal management estimate of a20% market share and an industry sales forecast by computer manufacturers association of 50,000 units. At the end of the year the association reported actual industry sales of 68,750 units.
Required:
(i) Compute the individual product and total sales volume variance.
(ii) Compute total sales quantity variance .
(iii) Compute the market size and market share variances.
(iv) Compute individual product and total sales mix variances.
(v) Comment on your results.
my doubt was how will i compute sales variance? i get a different ans if i use the formula given in padhuka
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