MDCL  Variance Help
Joe725
Registered Posts: 3
I'm doing the AAT MDCL Sample 2 and can't work out the variance, i'm terrible with them. It's 1.2
I thought the Variance would be:
300 x 30 = 9,000
300 x 36 = 10,800
Meaning variance of 1,800 but the answers it's 1,920.
Also i'm struggling to even start to work out the Usage variance, if anyone could help that'd be great!
I thought the Variance would be:
300 x 30 = 9,000
300 x 36 = 10,800
Meaning variance of 1,800 but the answers it's 1,920.
Also i'm struggling to even start to work out the Usage variance, if anyone could help that'd be great!
0
Comments

If you are doing the material price variance, I presume you already calculated the actual material cost to be £9,600.
We are told that the material actually cost £10/kg.
We are also told that the standard material per unit is 3kg, so the standard cost is £12/kg (£36 per unit/3kg)
Each kg therefore cost £2 below standard (favourable)
How many kg did they use?
The total cost was £9,600 and the cost per kg was £10, so they used 960kg
Therefore the total material price variance is 960kg x £2/kg = £1,920 (favourable)
For further guidance, try docs.wixstatic.com/ugd/9a8e75_f0f54f3053e64e40843adb41aa27c44d.pdf
or meadowgatetraining.co.uk/encyclopaediaofaccounting/2 
You're welcome0
Categories
 All Categories
 1.2K Books to buy and sell
 2.3K General discussion
 18.9K For AAT students
 234 NEW! Qualifications 2022
 133 General Qualifications 2022 discussion
 7 AAT Level 2 Certificate in Accounting
 31 AAT Level 3 Diploma in Accounting
 55 AAT Level 4 Diploma in Professional Accounting
 8.9K For accounting professionals
 23 coronavirus (Covid19)
 272 VAT
 91 Software
 272 Tax
 135 Bookkeeping
 7.3K General accounting discussion
 201 AAT member discussion (AATQB, MAAT, FMAAT and AAT Licensed Accountants and Bookkeepers)
 3.8K For everyone
 39 AAT news and announcements
 352 Feedback for AAT
 2.8K Chat and offtopic discussion
 586 Job postings
 17 Who can benefit from AAT?
 36 Where can AAT take me?
 44 Getting started with AAT
 26 Finding an AAT training provider
 47 Distance learning and other ways to study AAT
 25 Apprenticeships
 65 AAT membership