If the static budget variance for materials is £200 F and the budgeted cost for materials is £52,000, then the actual cost of materials is
A)£52,000.
B)£52,200.
C)£51,200.
D)£51,800.

Question

Quizplus · Accepted Answer

The static budget variance for materials is given as £200 F, meaning that the actual cost of materials is less than the budgeted cost. Therefore, we can calculate the actual cost of materials by subtracting the static budget variance from the budgeted cost.

Actual cost of materials = Budgeted cost - Static budget variance
Actual cost of materials = £52,000 - £200
Actual cost of materials = £51,800.

Therefore, the answer is D) £51,800.

If the Static Budget Variance for Materials Is £200 F