MDCL AAT Practice Assessment 2 - Operating Statement

If you have a look back at previous posts on this forum, you will find your answer eljx

First part you need to convert the variable element to the actual quantity produced. *3200/3000

Standard marginal cost of actual production = (21000+15000+3000)* 3200/3000 = 41,600

Material Price = 0 can be seen as the same amount of material was used at the same price
Material usage = 22400 - 21000 = 1,400 (Actual usage * standard price - Standard price for quantity produced) F
Labour rate = 0 (given)
Labour Efficiency = 16000 - 19200 = -3200 (remove (-) and label as Adverse in question) Equation is the same effectively as material usage
Variable OH Rate = 384 (given) F
Variable OH efficiency = 640 A
Actual Marginal cost of production 43,656 This is your check point it allows you to double check your answers above as they should match. Take your Standard marginal cost and add adverse variances and subtract favourable ones.

FO budget = 9000 (given)
FO expenditure v = 1000

Total cost = 53,656


The question as a whole is a straight variance question. If you understand how to get each variance it's a plug in the figures type answer.