Assessment 2 - Task 6C

Nevermind, i think its worked out like this:

Material price = (272,800/12,400) = £22 * 11,400 = £250,800
250,800 - 257,640 = (6840) Adverse

Actual usage = 11,400 kg
Standard price per kg = budgeted cost/budgeted material = 272,800/12,400 = £22
Standard cost for actual usage = Standard price per kg * actual material = £22 * 11,400 = £250,800
Standard material cost of production - Standard cost for actual usage = £267,520 - £250,800 = £16,720 Favourable

Material cost = (6840) + 16720 = £9,880