Variances not making sense on BPP question ..(budgeting)
topcat
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
Model answers\;
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 !!
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
Model answers\;
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 !!
0
Comments

Your figures should be AQ x AP = 827640. AQ x SP = 919600. SQ x SP = 10648000

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).0

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.0

Thanks a lot NPS your a star !:thumbup1::thumbup1:
I keep twisting my figures so much , this caused at least a wasted hour :blushing:0
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