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standard costing and variances

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › standard costing and variances

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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  • February 21, 2021 at 9:13 am #611171
    pdonkor
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    Question :
    The Perseus Co a medium sized company, produces a single product in its one overseas
    factory. For control purposes, a standard costing system was recently introduced.
    The standards set for the month of May were as follows:
    Production and sales 16,000 units
    Selling price (per unit) $140
    Materials:
    Material 007 6 kilos per unit at $12.25 per kilo
    Material XL90 3 kilos per unit at $3.20 per kilo
    Labour 4.5 hours per unit at $8.40 per hour
    Overheads (all fixed) $86,400 per month.
    (They are not absorbed into the product costs)
    The actual data for the month of May is as follows:
    Produced 15,400 units which were sold at $138.25 each
    Materials: Used 98,560 kilos of material 007 at a total cost of $1,256,640 and used 42,350
    kilos of material XL90 at a total cost of $132,979.
    Labour: Paid an actual rate of $8.65 per hour to the labour force. The total amount paid
    out, amounted to $612,766.
    Overheads (all fixed): $96,840
    Required: compute for
    a. material price and usage variance for material x & y
    b. labour rate and hours variance
    c. sales price & sales volume variance

    February 21, 2021 at 1:12 pm #611193
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    Please do not simply type out full questions and expect to be provided with a full answer.

    You must have an answer in the same book in which you found the question, so ask about whatever it is you are not clear about in the answer and then I will explain.

    Everything needed to be able to explain about is explained in my free lectures. The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.

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