call for sandyhood-urgent

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Sandy i am trying to my last minute practice exam papers, June 2005, task 1.2 can you explain to me how and why they arrive at those calculations for the four month material puchase, i see what they have done but why.

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:call for sandyhood-urgent

    We know the standard cost of one kg of raw material is �£2. This was in the standard cost card for each stove.
    We are told the price variances each month
    price variances show the value of the difference between the standard cost of what we bought and how much we actually paid
    we bought 200,000 kgs in January
    So that must have had a standard cost of �£2 x 200,000 = �£400,000

    We had a price variance of �£4,000(F)
    So we must have paid �£4,000 lessthan the standard cost for 200,000kgs
    In other words �£400,000-�£4,000. The actual cost of 200,000kgs was �£396,000.
    This works out at £1.98 per kg
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:call for sandyhood-urgent

    Sorry about the £ signs having funny A's
    I think there may be a bug

    Sandy

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