Page 409 - F2 - MA Integrated Workbook STUDENT 2018-19

Standard costing

Test your understanding 12

Tick

Output was higher than budgeted Usage variance is based on actual
output

The purchasing department bought 
poor quality material

The original standard usage was Should lead to a variable variance
set too high

Market prices for the material were Affect price not usage
higher than expected

An old, inefficient machine was 
causing excess wastage

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