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Hello everyone, could someone help me with a quick question.
A company used 11,000 kilograms of materials at a cost of £47,300. The production was 1,200 units, for which the standard usage is 10, 800 kilograms of materials at a total standard cost of £43,200. The material usage is?
Thank you :001_smile:
A company used 11,000 kilograms of materials at a cost of £47,300. The production was 1,200 units, for which the standard usage is 10, 800 kilograms of materials at a total standard cost of £43,200. The material usage is?
Thank you :001_smile:
0
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Hiya.
Im not sure if this is right but i have just worked it out as £800
Std is 10800 kgs
Actual 11000kgs
difference is 200kgs x the std price per kg gives you £800.
I hope this is right
Jo0 
I also get 800. I always walk through these questions the "long way" to make sure I am picking up the right figures. This is the answer I came up with:
Usage is based on Standard costs
Standard cost per unit is 43200/10800 = 4
(Standard Usage * Standard Costs)  (Actual Usage * Standard Costs)
(4*10,800) (4*11,000)
43200  44000 = 8000
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