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Sir while finding total material variance , we know that it is calculated as follows
Actual total cost X
Standard total cost for actual units X
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X
My question is that actual total cost is found by actual quantity (kgs) multiplied by actual price per kg OR is it found by actual units multiplied by actual price per unit?Neither 🙂
The standard cost for actual units, is the actual units multiplied by the standard material cost per unit.
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Sir I am asking about Actual total cost , not the standard cost for actual units. While finding Total material cost variance, actual total cost is found by actual quantity (kgs) multiplied by actual price per kg OR is it found by actual units multiplied by actual price per unit?
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