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ScotlandAccountingQuick questions

Preparing Management Accounting Information

Quick questions on Standard costing and variances - SQA Higher Accounting

3short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?
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Standard price £5 per kg, actual price £4.60, actual quantity 2,000 kg. Calculate the price variance and label it. [2 marks]
What is q2?
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Standard hours for output 3,000, actual hours 3,200, standard rate £10. Calculate the efficiency variance and label it. [2 marks]
What is q3?
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Suggest one cause of a favourable material usage variance. [1 mark]

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