Q Limited uses an integrated standard costing system. In October. when 2.400 units of the finished product were made. the actual material cost details were:

Material purchased Material used 5.000 units@ 4.50 each 4.850 units The standard cost details are that 2 units of the material should be used for each unit of the completed product and the standard price of each material unit is £4.70.

The entries made in the variance accounts would be:

A B

c D

E Material price variance a/c Debit £970 Debit £1.000 Credit £970 Credit £1 .000 Credit £1.000 Material usage variance a/c Debit £225 Debit £225 Debit £235 Debit £235 Debit £900 CIMA. Stage 2, November 1995 AppendixLO1