Figure 17-3
Tuvok Ltd. has developed the following standards for one of its products: $\begin{array}{ll}
\text { Standard cost of materials } & £ 0.50 \text { per pound } \
\text { Materials purchased and used } & 20,000 \text { pounds } \
\text { Total paid to suppliers } & £ 11,000 \
\text { Standard quantity allowed } & 18,000 \text { pounds }
\end{array}$
-Refer to Figure 17-3. Tuvok's materials usage variance is
A)£1,000 unfavourable.
B)£1,100 unfavourable.
C)£2,000 unfavourable.
D)cannot be determined from the information given.

Question

Quizplus · Accepted Answer

The materials usage variance is calculated as the difference between the actual quantity used and the standard quantity allowed, multiplied by the standard cost per unit. Here, it is (20,000 pounds - 18,000 pounds) * £0.50/pound = 2,000 pounds * £0.50/pound = £1,000 unfavourable.

Figure 17-3 Tuvok Ltd -Refer to Figure 17-3

Figure 17-3
Tuvok Ltd -Refer to Figure 17-3