Topic – Standard Costing
#Q.1) The following information is available from the cost records of Vatika & Co. For the month of August, 2013:
Material purchased 24,000 kg Rs. 1,05,600 Material consumed 22,800 kg
Actual wages paid for 5,940 hours Rs.29,700 Unit produced 2,160 units.
Standard rates and prices are:
Direct material rate is Rs. 4.00 per unit
Direct labour rate is Rs. 4.00 per hour Standard input is 10 kg. for one unit
Standard labour requirement is 2.5 hours per unit.
Calculate all material and labour variances for the month of August, 2013.
#Q.2) The standard labour employment and the actual labour engaged in a 40 hours week for a job are as under:
Category of Workers
|No. of workers||Wage Rate per hour ( Rs.)||No. of workers||Wage Rate per hour (Rs.)|
Standard output: 2,000 units; Actual output: 1,800 units Abnormal Idle time 2 hours in the week
(i) Labour Cost Variance
(ii) Labour Efficiency Variance
(iii) Labour Idle Time Variance.
#Q.3) SJ Ltd. has furnished the following information:
|Standard overhead absorption rate per unit||Rs. 20|
|Standard rate per hour||Rs. 4|
|Budgeted production||12,000 units|
|Actual production||15,560 units|
Actual overheads were Rs. 2,95,000 out of which Rs. 62,500 fixed . Actual hours 74,000
Overheads are based on the following flexible budget
|Total Overheads (Rs.)||1,80,000||2,10,000||2,70,000|
You are required to calculate the following overhead variances (on hour’s basis) with appropriate workings:
(i) Variable overhead efficiency and expenditure variance
(ii)Fixed overhead efficiency and capacity