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

Using  the  information below, list profit statements  for June and July using  (a) margin costing and (b) absorption costing. A company produces and sells 1 product only which

A statement of changes in working capital assists us in locating where such changes took place. In the first example we try to demonstrate the increase or decrease in particular it

Use a selected company or your current work environment to identify at least one cost or expense that would fit under each of the following categories: • Variable • Fixed • Mixed •

First of all, look at the balance sheet and income statement as a whole and spot the problem with it. Answer all questions given in the question + dig into each element of the bala

An analysis of the fluctuations of current assets and current liabilities that is working capital describes that how the working capital has decreased or increased. We want to iden

In most situations this will be essential to grant credit to customers. It may be essential either due to competition or because of the custom of trade. Though, when we grant credi

Tlie subphylum is called Uniramia because of the presence of unbranched appendages. These animals have non-jointed mandibles, uubranched appendages without any palps. They have

from the following particulars calculate the earning of worker . rate per hours $0.50 standard time 200 hours time taken 140 hours

An industrial drill costs $60.000 to purchase and $10,000 to install seven years ago. The market value now is $33.000 and this will decline by 12% of current value each year for th