# MDCL - Variance Help

Joe725
Posts:

**3**Registered
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!

## Comments

149Registered, TutorWe 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/encyclopaedia-of-accounting/

3Registered149Registered, Tutor