Material Usage Variance Help

Joe725

Hi, im having trouble working out the usage variance on AAT Mock 2 1.2 Materials usage variance?
I thought the variance would be
AQU x SR
960 x 36 = £34,560
SQAP x SR
(300 x 3) x 36 = £32,400
But i appear to be wrong as the answer is £720 Adverse
Is this because i've not done the variance per unit?
Thanks

N4T

Hi @Joe725,

I don't have access to the question as I sat AQ2013. If you put the £, kg, units next to the figures it should be easier to spot where you went wrong.

i.e 960kg x £36 per kg = £34,560
300 units x 3kg/unit = 900kg x £36 per kg = £32,400

Looking at your figures above:
Actual quantity is 960kg
Standard price is £36 per kg
Actual production is 300 units
Standard quantity is 3kg per unit

One of these 4 figures is incorrect. Which one?