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- This topic has 7 replies, 3 voices, and was last updated 9 years ago by John Moffat.
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- February 20, 2015 at 7:36 pm #229357
Product A uses 4 kg of material X and 7 kg of material Y at a standard price of $5 per kg and $6 per kg respectively. Product A needs two hours of skilled labour and one hour of semi-skilled labour at $10 per hour and $8 per hour respectively.
Production overhead is absorbed at $5 per labour hour. Selling and distribution costs are $3 per unit of product A.
What is the standard cost of production for product A?February 23, 2015 at 1:10 am #229691is the answer 98?
February 23, 2015 at 6:37 am #229706Daniel: Don’t just ask for the answers to questions. Say what your problem is!
The answer is in fact $105.
February 23, 2015 at 8:45 am #229756Thank you sir, pls i had 110 and i dnt get the overheads how it was absorbed. I added their hours allowed for the skilled and semi skilled and multiplied it by the $5.
but didn’t get your answer.pls wer did i go wrong?February 23, 2015 at 10:25 am #229788Material X: 4 x $5 = 20
Material Y: 7 x $6 = 42
Skilled labour: 2 x $10 = 20
Unskilled labour: 1 x $8 = 8
Production overheads: 3 x $5 = 15Total: $105
🙂
February 23, 2015 at 10:51 pm #229845Sir pls, i have seen where i went wrong, i used material x and y as if they were separate product.
February 24, 2015 at 2:50 am #229854Thank you so much sir!!
February 24, 2015 at 7:37 am #229877You are welcome (but please ask in the Ask the Tutor Forum in future if you wish me to answer – this forum is for students to help each other) 🙂
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