# Variances not making sense on BPP question ..(budgeting)

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Registered Posts: 452
Hi again :001_smile:

No idea why my answer is different to BPP here..

My workings

Materials Price variance = £90160 Favorable

Materials usage variance = £150,600 Adverse

Actual Material X Actual Price

45890 X£18 = £827,640

Actual Material X Standard price = £917,800

45890 X£20

Standard material per unit X Production X Standard price = £1,068,400

(22 X 2420 )X £20

Material Price Variance £91,960 f

Materials usage variance = £145,200 F

the question ignore scribbles again :

Any help appreciated please as i am lost on this completely

Thanks !!

• Registered Posts: 782
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Your figures should be AQ x AP = 827640. AQ x SP = 919600. SQ x SP = 1064800
• Registered Posts: 782
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So, it's the middle one which is wrong (your last one is also wrong but I think you've just made a typo as the calculation you show does give the right answer).
• Registered Posts: 782
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Actually your middle calculation is also only wrong as you've calculated 45890 x 20 instead of 45980 x 20. So you've got your calculations all spot on, you've just copied the initial figures down wrong from the question.
• Registered Posts: 452
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Thanks a lot NPS your a star !:thumbup1::thumbup1:

I keep twisting my figures so much , this caused at least a wasted hour :blushing: