Original budget: Standard cost of materials: : 10 kg at $5 per kg Budget Production: : 10,000

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Original budget:

Standard cost of materials: : 10 kg at $5 per kg

Budget Production: : 10,000 units

Actual results:

Production: : 11,000 units

Materials: : 108,900 kg at $4.75 per kg

Since the preparation of the budget the price per kg has changed to $4.85 and the usage to 9.5 kg per unit.

Required: Calculate the expenditure and usage variances, and analyse each into planning and operational variances

Related Book For answer-question

Principles of Cost Accounting

ISBN: 978-1133187868

16th edition

Authors: Edward J. Vanderbeck

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Posted Date: May 18, 2023 06:06 AM

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Original budget: Standard cost of materials: : 10 kg at $5 per kg Budget Production: : 10,000

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Principles of Cost Accounting

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