Financial performance

Cookiex Registered Posts: 9 Regular contributor ⭐ ? ⭐
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:


  • jojo1979
    jojo1979 Registered Posts: 75 ? ? ?

    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

  • uknitty
    uknitty Registered Posts: 591
    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 = 800
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