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Standard Costing

Forums › ACCA Forums › ACCA MA Management Accounting Forums › Standard Costing

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • June 3, 2019 at 10:30 pm #518688
    Anonymous
    Inactive
    • Topics: 1
    • Replies: 0
    • ☆

    Could someone please provide me the answer for the following question?
    Thanking you,

    Standard Costing:
    A company produces a product which has a standard variable production cost of $8 per unit made up as follows:
    Direct Material $4.60 (2kg x $2.30 per kg)
    Direct Labour $2.10 (0.7 hours x $3.00 per hour)
    Variable overhead $1.30
    Fixed manufacturing costs are treated as period costs.
    The following information is available for the period just ended.
    Variable manufacturing cost of sales (at standard cost) $263,520
    Opening stock of finished goods (at standard cost) $120,800
    Closing stock of finished goods (at standard cost) $146,080
    Direct material price variance $2,571 unfavourable
    Raw materials used in manufacture (at actual cost) $170,310
    Direct labour rate variance $4,760
    Direct labour efficiency variance $3,240 favourable

    Required:
    (a) Determine for the period just ended:
    (i) The number of units produced
    (ii) The raw material usage variance
    (iii) The total actual direct labour cost, and
    (iv) The actual cost per kg of raw material used.
    (b) Outline the possible causes of the raw material variances.

    June 4, 2019 at 7:14 am #518730
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54702
    • ☆☆☆☆☆

    Please don’t set test questions and expect someone to provide an answer.

    You should be using a Revision Kit from one of the ACCA approved publishers – they contain answers and explanations.

    Everything needed to be able to answer this question is explained in our free lectures. The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.

  • Author
    Posts
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  • The topic ‘Standard Costing’ is closed to new replies.

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