MABU - Assesment 2 Q6 C HELP!

BethRoberts21

Hi guys

I've been staring at this question for an hour now and still can't work it out...I'm sitting my exam in a few days and starting to freak



Any ideas?

Thanks in advance!

HWesham

Hi,
To find the standard cost of material take the budget cost and divide by budget units and then multiply by the actual units. (272800 / 15500 x 15200)
Material price is budget cost divided by material (kg) = std price per kg multiplied by actual material used (272800 / 12400 = £22 per std kg, £22 x 11400 = 250800) This is what the materials should have cost. Then just subtract the actual figure to get the variance (250800-257640 = an adverse variance of £6840.