• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Standard Costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Standard Costing

  • This topic has 3 replies, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • December 1, 2015 at 5:49 pm #286795
    akashnundloll
    Member
    • Topics: 2
    • Replies: 1
    • ☆

    I am struggling on that question in Kaplan Exam Kit(Ques.236). Please guide me.

    10,800 hours actually worked and paid costing $8,770.
    If the rate variance is $706 adverse, the efficiency variance $256 favourable, and 5,000 units were produced, what is the standard production time per unit?

    Thank you

    December 1, 2015 at 6:11 pm #286804
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51532
    • ☆☆☆☆☆

    Since the rate variance is 706 adverse, then they should have paid (at standard cost) a total of 8,770 – 706 = 8,064 for the hours actually worked.

    That means that the standard rate per hour is 8,064 / 10,800 = $0.746666 per hour

    Since the efficiency variance is 256 favourable, they must have worked 256 / 0.746666 = 342.86 hours less than they should have worked.

    They actually worked for 10,800 hours, so the standard hours for the actual production must have been 10,800 + 342.86 = 11,142.86 hours.
    This is for 5,000 units, so the standard time per unit = 11,142.86 / 5,000 = 2.23 hours

    I am a bit worried because usually in exam question the answer come to more exact figures. Check that you have copied the question correctly (although even if you have mistyped a figure, the workings above should make sense).

    December 1, 2015 at 6:51 pm #286818
    akashnundloll
    Member
    • Topics: 2
    • Replies: 1
    • ☆

    Thank you sir for your response.

    In fact, i had really mistyped a figure. It was 10,080 hours instead of 10,800 hours.
    The correct answer will then be 2.08.

    Thank you sir for your guidance.

    December 2, 2015 at 7:31 am #286882
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51532
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • daliuske on Financial management objectives – ACCA Financial Management (FM)
  • ksmigulec on Management of Working Capital  – Introduction – ACCA Financial Management (FM)
  • tmatanga2008@gmail.com on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)
  • John Moffat on Capital asset pricing model (part b) – ACCA Financial Management (FM)
  • John Moffat on Capital asset pricing model (part b) – ACCA Financial Management (FM)

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy