The AICPA question: “Material Price Variance”. I used: Actual DM Purchased x (Actual Price – Standard Price). I missed it bc I was supposed to use: Actual units used x (AP/unit – St.P/unit). Does anyone know how to determine when to use units vs. purchases?
AICPA Q#2: VMOH Spending Variance: I used: Actual hours worked x (Act. rate – St. rate) but they use: (VMOH actual – Budgeted VMOH based on Actual HRS). How do I determine what they are asking and which formula to use?