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

topcat

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 !!

Nps

Your figures should be AQ x AP = 827640. AQ x SP = 919600. SQ x SP = 1064800

Nps

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).

Nps

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.

topcat

Thanks a lot NPS your a star !:thumbup1::thumbup1:

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