Suel Books
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Each book requires 10 sheets of paper at a standard price per sheet of £3<BR><BR>During May 250 books were made<BR>Stores issued 2600 sheets to the production department<BR><BR>Stores bought 5000 sheets and have received an invoice for £14,500
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Suel Books
The actual cost was £14,500<BR><BR>The standard cost of what was purchased was £3 x 5,000 = £15,000<BR><BR>The material price variance is £500 favourable<BR><BR>The standard cost of what was issued was £3 x 2,600 = £7,800<BR><BR>The standard cost of what was produced was 250 x 10 x £3 = £7,500<BR><BR>The material usage variance is £300 adverse0 -
Suel Books
Why don't the material usage variance and the material price variance add up to the difference between the actual cost and the standard cost of actual production?<BR><BR>The raw material stockhas increased by 2400 sheets at a standard cost per sheet of £3. Total value of the stock increase £7,200.0