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the following information relates to april production of product ck
actual budgeted
units produced 580 600
input of material in kg 1566 1500
cost of material inputand purchased$77517 76500
what is material usage varianceHave you watched the free lecture on variances?
You compare the actual usage with the standard usage for the actual production, and then cost out at the standard cost per kg..
(Presumably you have an answer to the question in the same book that you found the question – it is better if you say what problem you have with the answer rather than just set me a test 🙂 )
well according to me the standard price is 76500 divide by 1500 which is 51
so i did this way
actual kilos 1566
standard usage for actual production 1500 ( i used this which im sure is wrong and my brains cannot fathom another way)
i then multiplied 66 with51 nd hence got 3366 adverse which is in the choices unfortunately the answer given is 5916 adverse please help and thanks once again….
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