Calculate the standard cost and standard selling of product, Managerial Accounting

Question 1:

A company's budgeted production of Product Zebra for the month ending 30 November 2004 was 10,000 units. The fixed overheads were budgeted at Rs3,200,000.

The standard costs for the product are:

Direct materials - 6 litres of material A at Rs30 per litre
Direct labour - 4 hours at Rs50 per hour
Variable overhead is absorbed at Rs40 per labour hour
The manufacturer operates a standard marginal costing system and the standard selling price is set based on a mark-up of 25%.

The actual results for the month ended 30 November 2004 were:
Production: 9,800 units
Direct materials: 59,700 litres at a total cost of Rs1,761,150
Direct labour: 39,500 hours at a total cost of Rs1,920,800
Variable overheads incurred: Rs1,542,000
Fixed overheads incurred: Rs3,120,000

During the month of November 2004, the company managed to sell all the quantity produced by offering a 3 % discount on the standard price.

Required:

(a) State briefly any four problems which a firm may face when setting standards.

(b) Calculate the standard cost and standard selling of product Zebra

(c) Prepare a marginal cost operating statement for the month of May, reconciling the budgeted contribution to the actual profit using as many variances as the data permit.

Posted Date: 10/25/2013 7:53:41 AM | Location : United States







Related Discussions:- Calculate the standard cost and standard selling of product, Assignment Help, Ask Question on Calculate the standard cost and standard selling of product, Get Answer, Expert's Help, Calculate the standard cost and standard selling of product Discussions

Write discussion on Calculate the standard cost and standard selling of product
Your posts are moderated
Related Questions
HGT Company initialized the accounting period with the following beginning balances:          During the accounting period, the company purchased $60,000 of raw materials and ended

Explain:- Q.1 As a potential investor, what is the problem with different countries having different accounting standards? As the president of a multinational company, what is

Discuss the different roles played by the qualitative and quantitative approaches to managerial decision making

1. In order to boost the housing market throughout 2009 and into 2010, the federal government offered a tax credit to first-time home buyers and some repeat buyers.

I only need the formulas in excel put in.

discuss which of the cost classification is suitable for LunchBreak LTD and why?

What is Production cost It begins with the supplying of materials, labour and services and ends with the primary packing of the product. Therefore, it includes the cost of d

What is Activity ratio Funds are invested in several assets in business to make sales and earn profits. The efficiency with which assets are managed directly affects the volume


#questioExercise 3-12 Computing Predetermined Overhead Rates and Job Costs [LO1, LO2, LO3, LO7] Kody Corporation uses a job-order costing system with a plantwide overhead rate base