bA

Good Day Sir I am having a bit of a challenge with the variance section, please help with the following: A company manufactures a single product L, for which the standard material cost is as follows. Material 14kg x$3 =$42/unit During July, 800 units of L were manufactured, 12 000 kg of material were purchased for $33,600, of which 11,500kg were issued to production. Co values all inventory at standard cost. What are the material price and usage variances for July? Answer is 2,400F & 900A The method I have been taught to work out my variances is: Price variance=2,400F AQxAP 12,000×2.8(33,600/12,000)= 33,600 AQxSP 12,000×3 = 36,000 Materials variance AQxAP=33,600 SQxSP=11,500×3=34,500 but this is incorrect Please tell me how to work out SQxSP? Or even how to perhaps apply a different, but effective approach? Thank you very much Zuzie