2025年ACCA考试财务会计真题试卷（含答案）

2025年ACCA考试财务会计真题试卷（含答案）考试时间：______分钟总分：______分姓名：______试卷内容Instructions:Pleaseanswerallthequestionsinthespacesprovided.Question1:AccountingConceptsandPrinciples(a)Explaintheconceptoftheaccountingequationanditssignificanceinaccountingrecords.Provideanexampletoillustratehowchangesinbusinesstransactionsaffecttheequation.(b)Describethedifferencebetweenthecashbasisandaccrualbasisofaccounting.Discusstheadvantagesanddisadvantagesofusingtheaccrualbasisforabusiness.(c)"Materialityisaconceptthatappliesonlytofinancialreporting."Discussthisstatement,providingexamplestosupportyourview.Question2:AccountingPolicies,EstimatesandErrors(a)Acompanyusesthestraight-linemethodfordepreciatingitsfixedassets.Explaintheconceptofdepreciationandtherationalebehindthismethod.Describetheaccountingtreatmentwhenacompanychangesitsdepreciationmethod.(b)Explaintheconceptofanaccountingestimate.Provideexamplesofcommonaccountingestimatesanddiscusshowchangesinestimatesareaccountedfor.(c)Duringitsyear-endaudit,anauditordiscoversthatthecompanyfailedtorecorddepreciationexpensefortheyearamountingto$50,000.Describetheaccountingtreatmentrequiredforthiserror,assumingitismaterialanddiscoveredinthesubsequentperiod.Question3:AccountingforNon-CurrentAssets(a)Distinguishbetweentangibleandintangiblenon-currentassets.Provideexamplesofeach.(b)Describetheprocessofacquiringanon-currentasset,includingtheinitialrecognitionandmeasurementatcost.Explainthefactorsthatneedtobeconsideredwhendeterminingthecarryingamountofanon-currentasset.(c)Acompanyownsamachinewithacostof$200,000andausefullifeof5years.Thecompanyusesthereducingbalancemethodofdepreciation.Calculatetheannualdepreciationexpenseforthefirstthreeyearsandthecarryingamountofthemachineattheendofthethirdyear.Question4:AccountingforCurrentLiabilities(a)Distinguishbetweencurrentandnon-currentliabilities.Provideexamplesofeach.(b)Explaintheconceptoftradepayablesanddiscussthemethodsusedtoaccountforthem,includingtheallowancefortradepayables.(c)Acompanyhasthefollowingtradepayablesattheendoftheaccountingperiod:*$100,000outstandingattheyear-end*$20,000expectedtobepaidwithinthenextmonth*$30,000expectedtobepaidbetweenoneandthreemonthsaftertheyear-endAssumingthecompanyestimatesthat2%ofitstradepayableswillnotbepaid,calculatetheamounttoberecognizedasanallowancefortradepayables.Question5:RevenueRecognition(a)Explainthefivestepsforrevenuerecognitionaspertherelevantaccountingstandards.(b)Acompanysellsgoodstoacustomeroncredittermsof2/10,n/30.Thesellingpriceis$10,000.Thecustomerpayswithin10days.Calculatetheamountofrevenuerecognizedbythecompany.(c)Discussthechallengesassociatedwithrevenuerecognitioninabusinessthatprovidesservicesoveraperiodoftime.Question6:MeasurementandPresentationofFinancialStatements(a)DescribethebasisofpreparationoffinancialstatementsunderIFRS.(b)Explaintheconceptofgoingconcernandthecriteriausedtoassesswhetherabusinessiscapableofcontinuingasagoingconcern.(c)Acompanypreparesitsfinancialstatementsusingtheaccrualbasisofaccounting.Describethemaincomponentsofthestatementoffinancialpositionandthestatementofprofitorlossandexplainhowtheyprovideinformationaboutthefinancialperformanceandpositionofabusiness.Question7:CashFlowStatement(a)Explainthethreemainsectionsofthestatementofcashflows:operatingactivities,investingactivities,andfinancingactivities.(b)Describethetwomethodsusedtopreparethestatementofcashflows:thedirectmethodandtheindirectmethod.Discusstheadvantagesanddisadvantagesofeachmethod.(c)Acompanyhasthefollowinginformationfortheyear:*Netprofitbeforetax:$200,000*Depreciationexpense:$40,000*Increaseintradereceivables:$30,000*Decreaseintradepayables:$20,000*Proceedsfromsaleofnon-currentasset:$50,000*Purchaseofnon-currentasset:$100,000*Issuanceofshares:$80,000*Paymentofdividends:$60,000Prepareastatementofcashflowsfortheyearusingtheindirectmethod.Question8:ManagementAccounting(a)Distinguishbetweenfinancialaccountingandmanagementaccounting.Discussthemainusersandpurposesofeach.(b)Explaintheconceptofcost-volume-profit(CVP)analysis.DescribethekeycomponentsofCVPanalysisandhowitcanbeusedfordecision-making.(c)Acompanyproducesandsellsasingleproduct.Thesellingpriceperunitis$20.Thevariablecostperunitis$12.Thecompany'sfixedcostsare$100,000permonth.Calculatethebreak-evenpointinunitsandsalesrevenue.Question9:BudgetingandControl(a)Describethepurposeofbudgetinginabusinessorganization.(b)Distinguishbetweenastaticbudgetandaflexiblebudget.Discusstheadvantagesanddisadvantagesofeach.(c)Acompanypreparesasalesbudgetforthenextquarter,expectingtosell10,000unitsineachmonth.Thestandardcostperunitis$15,consistingof$10ofdirectmaterialsand$5ofdirectlabor.Thecompanyactuallysells11,000unitsandincursthefollowingactualcosts:*Directmaterials:$110,000*Directlabor:$60,000Calculatethevariancesfordirectmaterialsanddirectlabor,assumingaflexiblebudgetisused.Question10:Taxation(a)Explaintheconceptof增值税andhowitiscalculated.(b)Acompanymakesataxableprofitof$150,000.Thecorporatetaxrateis25%.Calculatetheamountofcorporatetaxpayablebythecompany.(c)Discussthemaindifferencesbetweenincometaxand增值税.EndofPaper试卷答案Question1:AccountingConceptsandPrinciples(a)Theaccountingequationis:Assets=Liabilities+Equity.Itrepresentsthefinancialpositionofabusinessandmustalwaysbeinbalance.Changesinbusinesstransactionsaffecttheequationasfollows:*Increaseinasset=IncreaseinliabilityORIncreaseinequity*Decreaseinasset=DecreaseinliabilityORDecreaseinequity*Increaseinliability=DecreaseinassetORIncreaseinequity*Decreaseinliability=IncreaseinassetORDecreaseinequityExample:Abusinesspurchasesequipmentfor$10,000cash.Assetsincreaseby$10,000(Equipment)andCashdecreasesby$10,000.Theequationremainsbalanced:($10,000-$10,000)=0+$0.(b)Thecashbasisofaccountingrecordstransactionsonlywhencashisreceivedorpaid.Itissimplebutdoesnotmatchrevenueswithexpensesinthecorrectperiod.Theaccrualbasisofaccountingrecordstransactionswhentheyareincurred,regardlessofwhencashisexchanged.Itprovidesamoreaccuratepictureofabusiness'sfinancialperformanceandposition.Advantagesofaccrualbasis:*Providesatrueandfairviewoffinancialperformance.*Allowsforcomparisonoffinancialstatementsovertime.*Facilitatescredittransactions.Disadvantages:*Morecomplexthancashbasis.*Requiresestimation(e.g.,depreciation,baddebts).Disadvantagesofcashbasis:*Doesnotmatchrevenueswithexpenses.*Maynotprovideanaccuratepictureoffinancialhealth.*NotcompliantwithGAAP/IFRSformostbusinesses.(c)Materialityistheconceptthatfinancialinformationmustbesignificantenoughtoinfluencethedecisionsofusers.Itisnotanabsoluteconceptbutdependsonthenatureandsizeofthebusiness.Materialityappliestobothfinancialandnon-financialinformation.Aminorerrorinnon-financialinformation(e.g.,employeesatisfactionsurveyresults)canalsobematerialifitsignificantlyimpactsmanagementdecisions.Example:Asmallbusinesswithtotalassetsof$100,000mightconsidera$5,000accountingerrormaterial,whilealargemultinationalcorporationmightonlyconsidererrorsabove$1,000,000material.Materialityaffectsthenature,timing,andextentofauditprocedures.Question2:AccountingPolicies,EstimatesandErrors(a)Depreciationisthesystematicallocationofthedepreciableamountofanon-currentassetoveritsusefullife.Itrepresentstheconsumptionoftheasset'seconomicbenefits.Thestraight-linemethodallocatesanequalamountofdepreciationexpensetoeachperiodoftheasset'susefullife.Itissimpletocalculate:(Costofasset-Residualvalue)/Usefullife.Rationale:Thismethodassumestheasset'seconomicbenefitsareusedevenlyoveritslife.Changeindepreciationmethod:Ifachangeisjustifiedandprovidesreliablebenefits,itisaccountedforretrospectivelybyrestatingpriorperiods'financialstatementsasifthenewmethodhadalwaysbeenused.Thecumulativeeffectofthechangeisrecognizedintheopeningbalanceofequity(RetainedEarnings)fortheearliestperiodpresented.(b)Anaccountingestimateisareasonablepredictionoftheamountofuncertainfutureeventsorconditions.Estimatesarenecessarywheninformationisunavailableorunreliableatthereportingdate.Examples:*Baddebtsexpense(allowancefordoubtfulaccounts)*Depreciationexpense*Usefullifeofassets*Warrantiesliability*InventoryobsolescenceChangesinestimatesareaccountedforprospectively.Thechangeaffectsthecurrentperiodandfutureperiodsbutisnotappliedretrospectivelytopriorperiods.(c)Theerroroffailingtorecorddepreciationexpenseof$50,000fortheyearisanon-cashexpensethatwasnotrecognized.Thisaffectsboththeincomestatementandthestatementoffinancialposition.Accountingtreatment(assumingmaterialanddiscoveredinthesubsequentperiod):1.Determinetheimpactonpriorperiodfinancialstatements.Thepriorperiod'sprofitwasoverstatedby$50,000,andretainedearningswerealsooverstatedby$50,000.Thepriorperiod'sstatementofcashflows(indirectmethod)willbeincorrect.2.Restatethepriorperiodfinancialstatementsasifthedepreciationhadbeenrecorded.3.Recordapriorperiodadjustmentinthecurrentperiod'sfinancialstatements.DebitRetainedEarnings(oraspecificPriorPeriodAdjustmentreserve)for$50,000andcreditDepreciationExpensefor$50,000.Question3:AccountingforNon-CurrentAssets(a)Tangiblenon-currentassetsarephysicalassetsthathaveausefullifelongerthanoneyear.Examplesincludebuildings,machinery,equipment,vehicles,andinventory(ifheldformorethanoneyear).Intangiblenon-currentassetsareassetswithoutphysicalsubstancethathaveausefullifelongerthanoneyear.Examplesincludepatents,copyrights,trademarks,goodwill,andsoftware.Difference:Tangibleassetscanbeseenandtouched,whileintangibleassetsarerightsorresourceswithoutaphysicalform.(b)Acquisition:Non-currentassetsareinitiallyrecognizedattheircost,whichincludesthepurchasepriceanddirectlyattributablecostsnecessarytobringtheassettoitsworkingconditionforitsintendeduse(e.g.,deliverycosts,installationcosts,legalfees).Measurement:Thecarryingamount(bookvalue)ofanon-currentassetisitscostlessanyaccumulateddepreciation(fortangibleassets)oraccumulatedamortization(forintangibleassets)andanyaccumulatedimpairmentlosses.Iftheassetisrevalued,thecarryingamountisbasedonfairvaluelesscoststosell.(c)Cost=$200,000Usefullife=5yearsDepreciationmethod=Reducingbalance(Assumeacommonrate,e.g.,20%)Year1:$200,000*20%=$40,000Year2:($200,000-$40,000)*20%=$120,000*20%=$24,000Year3:($200,000-$40,000-$24,000)*20%=$136,000*20%=$27,200CarryingamountatendofYear3=$200,000-$40,000-$24,000-$27,200=$108,800.Question4:AccountingforCurrentLiabilities(a)Currentliabilitiesareobligationsthatareexpectedtobesettledwithinoneyearoroneoperatingcycle,whicheverislonger.Examplesincludetradepayables,short-termloans,accountspayable,accruedexpenses,andtaxespayable.Non-currentliabilitiesareobligationsthatarenotexpectedtobesettledwithinoneyearoroneoperatingcycle.Examplesincludelong-termloans,bondspayable,andpensionliabilities.Difference:Thetimingofsettlement(withinoneyearvs.longerthanoneyear)isthemaindistinction.(b)Tradepayablesareamountsowedtosuppliersforgoodsorservicespurchasedoncredit.Theyareamajorcomponentofcurrentliabilities.Accountingmethods:*Grossmethod:Recordstradepayablesattheinvoiceprice.Anallowancefortradepayables(contra-liabilityaccountorexpense)isrecognizedifbaddebtsareestimated.*Netmethod:Recordstradepayablesattheinvoicepricelesstheestimatedamountofuncollectiblepayables.ThismethodislesscommonlyusedunderIFRS.(c)Tradepayables:$100,000(noallowanceneededifnetmethodnotused)Expectedtobepaidwithinnextmonth:$20,000(partoftradepayables)Expectedtobepaid1-3monthsafteryear-end:$30,000(partoftradepayables)Totaltradepayablesconsidered:$20,000+$30,000=$50,000Allowancepercentage:2%Allowancefortradepayables=$50,000*2%=$1,000.Question5:RevenueRecognition(a)Thefivestepsforrevenuerecognition(IFRS15):1.Identifythecontractwithacustomer.Acontractexistsifapprovedbyparties,rightscanbeidentified,paymenttermsareidentifiable,commercialsubstanceexists,anditisprobabletheentitywillcollectconsideration.2.Identifytheperformanceobligationsinthecontract.Aperformanceobligationisapromisetotransferadistinctgoodorservicetothecustomer.3.Determinethetransactionprice.Thisistheamountofconsiderationanentityexpectstobeentitledtoinexchangefortransferringgoodsorservices.Considerdiscounts,rebates,refunds,credits,andvariableconsideration.4.Allocatethetransactionpricetotheperformanceobligationsinthecontract.Thetransactionpriceisallocatedtoeachperformanceobligationbasedonitsrelativestandalonesellingprice.5.Recognizerevenuewhen(oras)theentitysatisfiesaperformanceobligation.Revenueisrecognizedwhenthecustomerobtainscontrolofthepromisedgoodorservice.(b)Sellingprice=$10,000Creditterms=2/10,n/30(2%discountifpaidwithin10days,otherwisenetduein30days)Customerpayswithin10days.Sincethecustomertookthediscount,thetransactionpriceisreduced.Discountamount=$10,000*2%=$200Revenuerecognized=$10,000-$200=$9,800.(c)Challengesinrevenuerecognitionforservicesovertime:*Determiningwhencontroloftheserviceistransferredtothecustomer.Thisdependsonthenatureoftheserviceandthetermsofthecontract.Isituponcommencement,completion,oroveraperiod?*Measuringtheamountofperformanceobligationsatisfiedovertime.Thisrequiresestimatingtheprogresstowardscompletionusinginputoroutputmethods.*Handlingchangesinestimatesofprogress.*Dealingwithvariableconsideration(e.g.,performancebonuses,penalties).*Ensuringtheservicemeetscustomerexpectationsbeforecontrolistransferred.Question6:MeasurementandPresentationofFinancialStatements(a)ThebasisofpreparationoffinancialstatementsunderIFRSistheaccrualbasis.Thismeansrevenuesarerecognizedwhenearnedandexpensesarerecognizedwhenincurred,regardlessofthetimingofcashreceiptsorpayments.Financialstatementsalsocomplywiththequalitativecharacteristicsoffinancialreporting(relevance,faithfulrepresentation,comparability,verifiability,timeliness,non-mutualexclusivity,understandability).(b)Goingconcernistheassumptionthatabusinesswillcontinueitsoperationsfortheforeseeablefuture(atleast12monthsfromthereportingdate)withouttheintentionorneedtoliquidateorceasetrading.Itisafundamentalbasisforpreparingfinancialstatements.Criteriatoassessgoingconcern:*Existenceofassetsandliabilities(abilitytocontinueasagoingconcernisassumedunlessevidencesuggestsotherwise).*Abilitytogeneratefutureeconomicbenefits(positivecashflowsexpected).*Abilitytofinanceitsoperatingandinvestmentactivities(sufficientcapital).*Management'splansandcommitments(strategiestoaddressdifficulties).Ifsignificantdoubtexistsaboutgoingconcern,financialstatementsmustdisclosethebasisofpreparation(goingconcernbasis)andthenatureofthedoubtandthepotentialimpact.(c)Statementoffinancialposition(BalanceSheet):*Assets:Resourcesownedorcontrolledbytheentity,expectedtobringfutureeconomicbenefits(e.g.,cash,receivables,inventory,fixedassets,intangibleassets).*Liabilities:Presentobligationsoftheentityarisingfrompastevents,expectedtoresultinanoutflowofresources(e.g.,payables,loans,provisions).*Equity:Residualinterestintheassetsoftheentityafterdeductingliabilities(e.g.,sharecapital,retainedearnings).Providesinformationaboutthefinancialposition(solvency,liquidity)ataspecificpointintime.Statementofprofitorloss(IncomeStatement):*Revenue:Inflowsorotherenhancementsofassets,orsettlementsofliabilities,fromdeliveringorproducinggoods,renderingservices,orotheractivitiesthatconstitutetheentity'songoingmajororcentraloperations.*Expenses:Outflowsorotherconsumptionofassets,orincurrenceofliabilities,fromdeliveringorproducinggoods,renderingservices,orcarryingoutotheractivitiesthatconstitutetheentity'songoingmajororcentraloperations.*Profitorloss=Revenue-Expenses.Providesinformationaboutthefinancialperformance(profitability)overaperiod.Question7:CashFlowStatement(a)Statementofcashflowssections:*Operatingactivities:Cashflowsrelatedtotheprimaryrevenue-generatingactivitiesofthebusiness.Includescashreceivedfromcustomers,cashpaidtosuppliersandemployees,interestpaid,andincometaxespaid.*Investingactivities:Cashflowsrelatedtotheacquisitionanddisposalofnon-currentassets(e.g.,purchase/saleofproperty,plant,andequipment;purchase/saleofinvestments).*Financingactivities:Cashflowsrelatedtotransactionswithownersandcreditors.Includescashreceivedfromissuingsharesorloans,cashpaidfordividendsorrepayingloans.(b)Directmethod:Listsmajorclassesofoperatingcashreceipts(e.g.,cashreceivedfromcustomers)andcashpayments(e.g.,cashpaidtosuppliers,employees).Requiresmoredetailedinformationaboutoperatingcashflows.Indirectmethod:Startswithnetprofitbeforetaxandadjustsitfornon-cashitems(e.g.,depreciation)andchangesinworkingcapital(e.g.,increases/decreasesinreceivables,payables).Simplerasitusesinformationdirectlyfromtheincomestatementandbalancesheet.Advantagesofdirectmethod:Moretransparent,showsactualcashflowsfromoperations.Disadvantagesofdirectmethod:Morecomplextoprepare,requiresdetaileddata.Advantagesofindirectmethod:Simpler,usesreadilyavailablefinancialstatementdata.Disadvantagesofindirectmethod:Lesstransparentregardingtheactualcashgenerationprocess.(c)Netprofitbeforetax:$200,000Adjustmentsforoperatingactivities:+Depreciationexpense:$40,000(addbacknon-cashexpense)-Increaseintradereceivables:$30,000(cashnotyetreceived,reducenetprofit)+Decreaseintradepayables:$20,000(cashnotyetpaid,reducenetprofit)Netcashfromoperatingactivities=$200,000+$40,000-$30,000-$20,000=$190,000Cashflowsfrominvestingactivities:-Purchaseofnon-currentasset:$100,000(cashoutflow)+Proceedsfromsaleofnon-currentasset:$50,000(cashinflow)Netcashusedininvestingactivities=-$50,000Cashflowsfromfinancingactivities:+Issuanceofshares:$80,000(cashinflow)-Paymentofdividends:$60,000(cashoutflow)Netcashfromfinancingactivities=$20,000Netincreaseincash=$190,000-$50,000+$20,000=$160,000Cashatbeginningofyear(notprovided,assume0forthiscalculation)Cashatendofyear=$160,000*(Note:Thiscalculationassumesthecashatthebeginningoftheyeariszeroornotprovided.Afullstatementwouldincludethis).*Question8:ManagementAccounting(a)Financialaccountingfocusesonprovidingfinancialinformationabouttheperformanceandpositionofabusinesstoexternalusers(investors,creditors,taxauthorities).Itisgovernedbyaccountingstandards(GAAP/IFRS),historicalcostbasis,andperiodicreporting(annually,quarterly).Managementaccountingfocusesonprovidingfinancialandnon-financialinformationtointernalusers(managers)forplanning,controlling,decision-making,andperformanceevaluation.Itisnotgovernedbyexternalstandards,canusevariousbases(historical,currentvalue),andisoftenflexibleandtimely.Mainusers:*Financialaccounting:Externalstakeholders.*Managementaccounting:Internalmanagers.Mainpurposes:*Financialaccounting:Compliance,reporting,investment/creditdecisions.*Managementaccounting:Planning(budgeting),control(performancemeasurement),decision-making(e.g.,pricing,productmix).(b)Cost-volume-profit(CVP)analysisstudiestherelationshipbetweencosts,volume,andprofit.Ithelpsmanagersunderstandhowchangesincostsandvolumeaffectprofitability.Keycomponents:*Fixedcosts:Coststhatdonotchangewithchangesinactivityvolumewithintherelevantrange(e.g.,rent,salaries).*Variablecosts:Coststhatvaryproportionallywithchangesinactivityvolume(e.g.,rawmaterials,directlabor).*Contributionmargin:Thedifferencebetweensalesrevenueandvariablecosts.Itcontributestowardscoveringfixedcostsandgeneratingprofit.*Contributionmarginperunit:Sellingpriceperunit-Variablecostperunit.*Break-evenpoint:Thelevelofactivity(inunitsorsalesrevenue)wheretotalrevenueequalstotalcosts(bothfixedandvariable),resultinginzeroprofit.Formulas:*Break-evenpoint(units)=FixedCosts/ContributionMarginperUnit*Break-evenpoint(salesrevenue)=FixedCosts/ContributionMarginRatio(ContributionMargin/SalesRevenue)(c)Sellingpriceperunit:$20Variablecostperunit:$12Contributionmarginperunit=$20-$12=$8Fixedcosts:$100,000Break-evenpoint(units)=$100,000/$8=12,500unitsBreak-evenpoint(salesrevenue)=12,500units*$20/unit=$250,000*(Note:Thequestionmentionssalesrevenueof11,000unitsinthevariancepart,whichseemsinconsistent.Thecalculationaboveusestheprovidedsellingpriceandvariablecosttofindthebreak-evenpoint).*Question9:BudgetingandControl(a)Thepurposeofbudgetingistoplanthefutureoperationsandfinancesofabusiness.Itinvolvessettingquantitativegoalsandtargetsforvariousaspectssuchassales,production,costs,andcashflow.Benefitsinclude:*Providingdirectionandcoordinationfortheorganization.*Facilitatingplanningandcontrolactivities.*Improvingresourceallocationandutilization.*Enhancingcommunicationanddecision-making.*Motivatingemployeesbysettingclearobjectives.*Providingabasisforperformanceevaluation.(b)Staticbudget:Abudgetpreparedforasinglelevelofactivityandremainsunchangedregardlessoftheactuallevelofactivityachieved.Itisbasedonestimatesmadeatthebeginningoftheperiod.Flexiblebudget:Abudgetthatadjuststotheactuallevelofactivityachievedduringtheperiod.Itshowswhatcostsshouldhavebeenfortheactuallevelofoutput,makingitmoresuitableforperformanceevaluation.Advantagesofstaticbudget:*Simpletoprepare.*Providesafixedtargettostrivefor.*Usefulforplanningandcontrolifactivitylevelsremainpredictable.Disadvantagesofstaticbudget:*Notrealisticifactivitylevelsvarysignificantly.*Difficulttouseforperformanceevaluationasitignoresvolumevariances.Advantagesofflexiblebudget:*Morerealisticandrelevantforperformanceevaluation.*isolatestheeffectofvolumechangesfromothervariances(e.g.,price/spendingvariances).Disadvantagesofflexiblebudget:*Morecomplextoprepare.*Requiresaccuratecostestimation(variableandfixedcostbehavior).(c)Standardcostperunit:$15($10materials+$5labor)Budgetedsalesvolume:10,000unitsActualsalesvolume:11,000unitsActualcosts:*Directmaterials:$110,000*Directlabor:$60,000Variancecalculation:1.Directmaterialsvariance:*Actualquantityused*Actualpriceperunit=$110,000(AQ*AP)*Standardquantityallowedforactualoutput=11,000units*1unit(assumed)*$10/unit(std.materialcost)=$110,000(SQ*SP)*Directmaterialspricevariance=(AP-SP)*AQ=($110,000/11,000units-$10)*11,000units=($10-$10)*11,000=