Assignment Questions
STANDARD COSTING
Question 1. Following details relating to product X during the month of April, 2009 are available:
Standard cost per unit of X :
Materials : 50 kg @ Rs.40/kg
Actual production : 100 units
Actual material cost : Rs.42/kg
Material price variance : Rs.9,800 (Adverse)
Material usage variance : Rs.4,000 (Favourable)
Calculate the actual quantity of material used during the month April, 2009.
Question 2. The standard and actual figures of product 'Z' are as under:
Standard Actual
Material quantity 50 units 45 units
Material price per unit Re. 1.00 Re. 0.80
Calculate material cost, Price & Usage variances.
Question 3. The standard and actual figures of a firm are as under
Standard time for the job 1,000 hours
Standard rate per hour Re. 0.50
Actual time taken 900 hours
Actual wages paid Rs. 360
Compute the variances
Question 4. Compute total sales variances, Price & Volume variance from the following figures: -
| Product | Budgeted Quantity | Budgeted Price | Actual Quantity | Actual Price |
| A | 2,000 | 2.50 | 2,400 | 3.00 |
| B | 1,500 | 5.00 | 1,400 | 4.50 |
| C | 1,000 | 7.50 | 1,200 | 7.00 |
| D | 500 | 10.00 | 400 | 10.50 |
Question 5. During a period 25,600 labour hours were worked at a standard rate of Rs. 7.50 per hour. The direct labour efficiency variance was Rs. 8,250 (A). How many standard hours were produced?
Question 6. During a period 850 assemblies were made with a nil rate variance and a Rs. 4,400 adverse efficiency variance. If the standard labour hours per assembly are 24 with a Rs. 8 per hour standard labour cost, how many actual labour hours were worked?
Question 7 The actual and standard direct material costs for producing a specified quantity of product are as follows:
| Actual | 51,000 kgs. at Rs. 5.05 | Rs. 2,57,550 |
| Standard | 50,000 kgs. at Rs. 5.00 | Rs. 2,50,000 |
Find direct material price variance.
Question 8. Nandana Ltd. manufactures a commercial product for which the standard cost per unit is as follows:
|
| Rs. |
| Material: 5 kg. @ Rs.4 per kg. |
20.00 |
| Labour: 3 hours @ Rs.10 per hour |
30.00 |
| Overhead: Variable: 3 hours @ Rs.1 Fixed: 3 hours @ Rs.1.50 |
3.00 1.50 |
| Total | 54.50 |
During Jan. 2012, 600 units of the product were manufactured at the cost shown below:
|
| Rs. |
| Materials purchased 5,000 kg. @ Rs.4.10 per kg. |
20,500 |
| Materials used:3,500 kg. |
|
| Direct Labour: 1,700 hours @ Rs.9 |
15,300 |
| Variable overhead Fixed overhead | 1,900 900 |
| Total | 38,600 |
The flexible budget required 1,800 direct labour hours for operation at the monthly activity level used to set the fixed overhead rate.
Calculate:
(a) Material price variance,
(b) Material Usage variance,
(c) Labour rate variance,
(d) Labour efficiency variance,
(e) Variable overhead expenditure variance,
(f) Variable overhead efficiency variance,
(g) Fixed overhead expenditure variance,
(h) Fixed overhead volume variance,
(i) Fixed overhead capacity variance, and
(j) Fixed overhead efficiency variance
| ANSWER HINTS | |
| Question No. | Answer |
| 1 | 4900 kg |
| 2 | Material cost variance Rs. 14(F); Price variance Rs. Rs.9 (F); Usage variance Rs. Rs.5 (F) |
| 3 | labour cost variance Rs. 140(F); Rate variance Rs. 90 (F); Efficiency variance Rs. 50 (F) |
| 4 | Total Sales variance Rs. 1,100 (F); Sales price variance Rs. 100(F); Sales volume variance Rs. 1,000 (F) |
| 5 | 24,500 hours |
| 6 | 20,950 hours |
| 7 | Rs.2,550 (A) |
| 8. | a.Material price variance Rs.500 Adv.; b.Material Usage variance Rs.2,000 Adv.; c.Labour rate variance Rs.1,700 Fav.; d.Labour efficiency variance Rs.1,000 Fav.; e.Variable overhead expenditure variance Rs. 200 Adv.; f.Variable overhead efficiency variance Rs.100 Fav.; g. Fixed overhead expenditure variance = Nil; h.Fixed overhead volume variance = Nil; i.Fixed overhead capacity variance Rs.50Adv. and j.Fixed overhead efficiency variance Rs.50 Fav
|
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