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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Price variance
17000 kg of material b was purchased at a cost of 150000. Inventories valued at standard cost of 9.70 per kg. Usage of material A in period was 16400.
So in this question I’m confused for the price variance formula should i multiply the variance with actual quantity purchased or actual quantity used? Because there’s a difference between both of them & should i prioritise actual quantity purchased over actual quantity used?
For the price/expenditure variance we always use the actual quantity purchased.
