costing

Question 1

material cost variance

Answer 1

Standard Cost – Actual Cost
= [(SQ x SP) – (AQ x AP)]

= material price variance + material usage variance

Question 2

material price variance

Answer 2

Actual Quantity x ( sp - ap)

price will be calculated on the actual quantity only.

Question 3

material usage variance

Answer 3

sp x ( sq-aq)

bcz , price constant hona chahiye … isliye keval standard price use krenge bro :)