• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exams

How was your exam? Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Material usage variance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Material usage variance

  • This topic has 4 replies, 2 voices, and was last updated 10 months ago by John Moffat.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • August 6, 2024 at 8:42 pm #709235
    abdulrahmanbakhtani@gmail.com
    Participant
    • Topics: 8
    • Replies: 12
    • ☆

    Hello sir,

    I hope this massage finds you well. I am here to asking a question about material usage variance

    based on the Kaplan MA book. The formula for the material usage variance is:

    (Actual quantity used x Standard price) – (standard quantity for actual production x standard price)

    But I think it’s a bit un logical , it should be like this:

    (standard quantity for actual production x standard price) – (Actual quantity used x Standard price)

    Cause suppose our standard material usage for period is 110 kg but we actually use 100 kg. We actually save 10 kg of material and it’s a favorable variance and cause an increase in profit. But if we use book formula, we took a completely opposite result.

    Could you please clarify this for me?
    Thank you,

    August 6, 2024 at 8:51 pm #709236
    abdulrahmanbakhtani@gmail.com
    Participant
    • Topics: 8
    • Replies: 12
    • ☆

    And sir, I forgot to write this in my previous massage. What if we make the formula a bit easier? Is it right to use:

    (Standard usage – Actual usage) x standard cost

    Cause by subtracting Standard usage from actual usage, we just know whether we use more or save material than our expectation, and by multiplying the cost, we find how much profit/loss it becomes.

    Is it right?

    August 7, 2024 at 9:29 am #709250
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54679
    • ☆☆☆☆☆

    Yes – your second post is correct.

    Do watch my free lectures on this. The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well 🙂

    August 8, 2024 at 9:03 am #709288
    abdulrahmanbakhtani@gmail.com
    Participant
    • Topics: 8
    • Replies: 12
    • ☆

    Thank you sir,

    Yes, I do see your free lecture notes. They are very effective, and you are the only teacher who explains the formulas in a logical way. I appreciate you taking the time to provide these valuable resources for free. They have been incredibly helpful in my preparation for the Paper MA exam.

    August 9, 2024 at 6:26 am #709315
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54679
    • ☆☆☆☆☆

    Thank you for your comment 🙂 🙂

  • Author
    Posts
Viewing 5 posts - 1 through 5 (of 5 total)
  • The topic ‘Material usage variance’ is closed to new replies.

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • poojam on Objective of financial reporting – ACCA Financial Reporting (FR)
  • mm3677 on IAS 16 Accounting for a revaluation – CIMA F1 Financial Reporting
  • Anastesia123 on MA Chapter 1 Questions Accounting for Management
  • John Moffat on MA Chapter 26 Questions Variance Analysis
  • acowtant on Changes in group structure – examples – ACCA SBR lectures

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in