calculate usage operational variance

The management of Wimbrush feel that standard costing and variance analysis have little to offer in the
reporting of some of the activities of their firm.
‘Although we produce a range of fairly standardised products’ states the accountant of Wimbrush,
‘prices of many of our raw materials are apt to change suddenly and comparison of actual prices
with predetermined, and often unrealistic, standard prices is of little use.
For example, consider the experience over the last accounting period of two of our products,
Widgets and Splodgets. To produce a Widget we use 5 kg of X and our plans were based on a cost
of X of £3 per kg. Due to market movements the actual price changed and if we had purchased
efficiently the cost would have been £4.50 per kg.
Exam question bank 587
Production of Widgets was 2,000 units and usage of X amounted to 10,800 kg at a total cost of
£51,840.
A Splodget uses raw material Z but again the price of this can change rapidly. It was thought that
Z would cost £30 per tonne but in fact we only paid £25 per tonne and if we had purchased
correctly the cost would have been less as it was freely available at only £23 per tonne. It usually
takes 1.5 tonnes of Z to produce 1 Splodget but our production of 500 Splodgets used only 700
tonnes of Z

a) (i) Analyse the material variances for both Widgets and Splodgets, utilising the following.
(1) Traditional variance analysis
(2) An approach which distinguishes between planning and operational variances

hello sir I don’t understand how they have calculated material X and Z usage operational variance i.e it is not mention what is revised usage in both material . In model answer standard usage has been used as revised usage .

I have calculated as follows

material z usage planning revised -std.=1.4*500-750=1500 F
operational = actual -revised =700-700=0

i have used revised price to calculate revised usage =23*700

X*500*23=16100
X=1.4 REVISED usage

material X usage planning revised -std.=5.4*2000-10000=800*3=2400 A
usage operational actual -revised=10800-10800=0