STANDARD COSTING

1 From the following, find material cost, usage and price variance
Quantity of material purchased 3,000 units
Value of material purchased Rs 9,000
Standard quantity of material required per tone of finished product 25 units
Standard rate of material Rs 2 per unit
Opening stock of material Nil
Closing stock of material 500 units
Finished production during the period 80 tonnes

2 Standard output 100 units

Standard time per unit 2 hours
Standard rate per hours Rs 3
Actual output 80 units
Total actual time taken 150 hours
Actual rate per hour Rs 3.50
Calculate direct labour cost variance

3 The standard cost card reveals the following information

Standard labour rate 50paisa per hour
Standard hours required per unit 10 hours
Actual data are given below:
Units produced 500
Hours worked 6,000
Actual labour cost 2,400
Calculate labour variances.
(Assignment)

4 A manufacturing concern which has adopted standard costing furnishes the following
information
Standard:
Material for 70 kg of finished products 100 kgs.
Price of materials Re 1 per kg
Actual
Output 2,10,000 kgs
Material used 2,80,000 kgs
Cost of materials 2,52,000
Calculate material variances
(Assignment)

5 In a factory section are 80 workers and the average rate of wages per worker is Re 0.50
per hour.
Standard working hours per week are 45 and the standard performance is 6 units per hour.
During the four weeks in February, wages paid for 40 workers was Re 0.50 per hour for ,
15 workers Re 0.60 per hour, and for 25 worker Re 0.04 per hour
The section did not work for 4 hours due to breakdown of machinery.
Find out labour variances for the 4 weeks.

6 The following information is gathered from the labour records of R & Co

 Payroll allocation for direct labour Rs 20,000
Time card analysis shows Rs 9,000 hours were worked on productions lines. Production
report for the period showed that 4,000 units have been completed, each having standard
labour time of 1.5 hours and a standard labour rate of Rs 2 per hour.
Calculate labour variances
(Assignment)

7 The following details relating to the product X during the month 2009 are available. You
are required to compute the material and labour cost variance and also to reconcile the
standard and actual costs with the help of such variances.
Standard cost per unit
Material 50 kg @ Rs 40 per kg
Labour 400 hours @ Re 1 per hour
Actual cost for the month
Material 4,900 kgs @ Rs 42 per kg
Labour 39,600 hours @ Re 1.10 per hour
Actual production 100 units
(Assignment)

8 The following data is given

Budget Actual
Production ( in units) 400 360
Man hours to produce above 8,000 7,000
Variable overheads( in rupees) 10,000 9,150
Standard time to produce one unit of the product is 20 hours
Calculate variable overhead variances

9 The following information is available from the records of a factory

Budgeted Actual
Fixed overheads for may 5,000 6,000
Production in may (units) 1,000 1,050
Standard time per unit (hours) 10 -
Actual hours worked in may - 11,000
Calculate fixed overhead variances