call for sandyhood-urgent

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