Standard cost card, Cost Accounting

Standard Cost Card

It is a card record of the Standard or expected costs in producing a specified output.  This gives the physical quantities of inputs and also their monetary values. This gives also the quality required. As an example:  Grade a labour.

The setting process of standards results in the establishment of the standard cost for the product. The make-up of the standard cost is recorded on a standard cost card. As an example: a standard cost card in a company's X004 product would look given as:

Assuming the given product details as:

1. The product passes via department A, B, and C

2. It consume the following two types of direct materials as:

            P10:  2.5 kg (kilo-gram) each @ Shs.14.8:  it is applied in department A

            A53:  1000 units @ shs.3.75 per 100 units:  It is applied in department B.

3. X004 also used direct labour given as:

Grade M:  4.8 hours @ Shs.2.5/hr in Department A

Grade N:  9.2 hours @ Shs.2.5/hr in Department B.

Grade O:  (Assembly time):  16.4 hours @ Shs.1.75/hr in Department C.

4. Production overheads are applied given as:

Machine overheads:  based on direct labour hours. They are incurred like shs.11/hr in departments A and B.

Indirect labour:  based on direct labour hours in Department C above at shs.6/hr.

Required

Prepare or get ready a standard cost card for product X004.

Solution:

Standard Cost Card For Product X004

Revised:  31.12.2004 By:  Aron

Cost Type and Quantity

Standard Rate (shs)

Department A (shs)

Department B (shs)

Department C (shs)

Total (shs)

Direct Material

 

 

 

 

 

2.5kg of P10

14.8

37

-

-

37.00

1000 units of A53

3.75 per

-

37.5

-

37.50

 

100 units

 

 

 

74.50

Direct Labour

 

 

 

 

 

Grade M: 4.8hrs

2.5

12

-

-

12.00

Grade N: 9.2hrs

2.5

-

23

-

23.00

Grade O: 16.4 hrs

1.75

-

1

28.70

28.70

 

 

 

 

 

63.70

Production Overheads

 

 

 

 

 

Machining:

11

58.20

101.12

-

153.92

Indirect Labour

6

-

-

98.4

98.4

 

-

101.80

161.62

127.10

252.32

 

Standard Cost Summary:

 

 

 

 

Shs.

 

 

 

Direct Materials:

74.50

 

 

 

Direct Labour

63.70

 

 

 

Production Overheads

252.32

 

 

 

Standard cost per unit

390.52

 

 

 

Posted Date: 2/7/2013 5:38:42 AM | Location : United States







Related Discussions:- Standard cost card, Assignment Help, Ask Question on Standard cost card, Get Answer, Expert's Help, Standard cost card Discussions

Write discussion on Standard cost card
Your posts are moderated
Related Questions
Considerations in Variance Investigation As already notice above, not all variances are investigated; this is only the material and meaningful as for cost control reasons vari

process costing new practices

Andrew Industries is contemplating issuing a 30-year bond with a coupon rate of 7% (annual coupon payments) and a face value of $1000. Andrew believes it can get a rating of A from

Break-Even Chart This is a diagrammatic presentation of the relationship among costs, prices, expenses and the sales volume. A break-even chart expresses revenue and expens

Price and Cost   information  play  no  role  in  negotiated  transfer  prices.  Do  you  agree? Describe.

Find Out Overhead Application Rate The given is the budget of Superb Engineering Works for the 2002 year Factory overheads Kshs 62,000

Target Income Calculations Breaking even is not the bad thing, but surely not a satisfactory outcome for most businesses. In its place, a manager might be more interested in le

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4 Variable costs are those

The following is a summary of a cash book for the year ended 31 April 2012 Payments                                              $              Receipts

Loring Company had the following data for the month: Variable costs per unit: Direct Materials $4 Direct Labor 3.20 Variable Overhead 1 Variable selling expense 0.40 Fixed Ov