How to calculate favourable & adverse variance analysis - Direct Materials & Labour (MDCL AAT)

Описание: This video may be useful if you are currently studying Management Accounting Decision and Control (MDCL) at AAT level 4, or studying A level accounting or similarly Accounting at University.

Time stamps:
0:00 - Theory and background understanding
02:26 - Materials diagram
03:20 - Labour diagram
04:48 - Example 1
07:35 - Example 2
08:00 - Material variances using diagram
10:47 - Labour variances using diagram

Here I show you how to calculate material and labour variances and a technique that will hopefully help you to understand when there are favourable or adverse variances.

I also spend a good minute at the start of this video explaining why we use standard costing and where it comes in use in a business to hopefully help you to tie the theory back to real world examples/