# Material Usage Variance Help

Joe725
Posts:

**3**Registered
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

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

## Answers

191AAT StudentI 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?