Mathematics · Cost Accounting - Spreadsheet Formulas
In a standard costing spreadsheet, actual production in units is in cell C2, standard kg per unit is in cell B3, standard cost per kg is in cell B4, and actual total kg purchased is in cell C5. What is the correct formula for the Direct Materials Usage Variance?
- 1= (C5 × B4) - (C2 × B3 × B4)✓
- 2= (C5 × C4) - (C2 × B3 × C4)
- 3= (C5 × B4) - (B2 × B3 × B4)
- 4= (C5 × C4) - (B2 × B3 × B4)
Correct answer
= (C5 × B4) - (C2 × B3 × B4)
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