Page 108 - P1 Integrated Workbook STUDENT 2018
P. 108
Chapter 7
Material variances
3.1 Calculations
Where purchases = issues and/or the price variance is calculated at the time of
issue:
SQSP
Usage variance
AQSP Total variance
Price variance
AQAP
A = Actual
S = Standard
Q = Quantity
P = Price
If there is a change in materials inventory in the year, then the price variance is
based on the quantity of material purchased whilst the usage variance is based on
the actual quantity used.
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