materials price varianceForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › materials price varianceThis topic has 3 replies, 2 voices, and was last updated 11 years ago by John Moffat.Viewing 4 posts - 1 through 4 (of 4 total)AuthorPosts June 8, 2014 at 12:30 am #175097 josy87MemberTopics: 173Replies: 215☆☆☆Hi Sir John, please I’d need help with this.Beech LTD has budgeted on producing 12 000 desks. the standard usage of wood is 1.5 per metres per desk at a standard cost of $5 per metre.the actual production is 15000 desks and use 24000 metres of wood at a cost of 108000.find the material price variance.I got 12000 fav, but the answer is adverse, I don’t know why as I presume, they budgeted the cost of material at $5 but +they did buy at $4.5. June 8, 2014 at 7:47 am #175127 John MoffatKeymasterTopics: 57Replies: 54699☆☆☆☆☆It is favourable. (The answer is wrong and I will have it corrected – sorry 🙁 ) June 8, 2014 at 8:12 am #175140 josy87MemberTopics: 173Replies: 215☆☆☆thanks you Sir June 9, 2014 at 7:17 am #175302 John MoffatKeymasterTopics: 57Replies: 54699☆☆☆☆☆You are welcome 🙂AuthorPostsViewing 4 posts - 1 through 4 (of 4 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In