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    Standard Costing Practice Questions Final

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    ShehrozST
    This document contains 8 practice questions related to standard costing. The questions cover topics like material and labor variances, calculating variances based on budgets, standard mixes and yields, and material price and usage variances. Learners are provided with standard and actual data and required to calculate the relevant variances to test their understanding of variance analysis techniques in standard costing.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Standard Costing Practice Questions Final

    Uploaded by

    ShehrozST
    179 views5 pages
    This document contains 8 practice questions related to standard costing. The questions cover topics like material and labor variances, calculating variances based on budgets, standard mixes and yields, and material price and usage variances. Learners are provided with standard and actual data and required to calculate the relevant variances to test their understanding of variance analysis techniques in standard costing.

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    Standard Costing Practice Questions final

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    This document contains 8 practice questions related to standard costing. The questions cover topics like material and labor variances, calculating variances based on budgets, standard mixes and yields, and material price and usage variances. Learners are provided with standard and actual data and required to calculate the relevant variances to test their understanding of variance analysis techniques in standard costing.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    179 views5 pages

    Standard Costing Practice Questions Final

    Uploaded by

    ShehrozST
    This document contains 8 practice questions related to standard costing. The questions cover topics like material and labor variances, calculating variances based on budgets, standard mixes and yields, and material price and usage variances. Learners are provided with standard and actual data and required to calculate the relevant variances to test their understanding of variance analysis techniques in standard costing.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    Practice

    Manual
    Cost & Management Accounting

    Standard Costing
    Practice Questions

    Question 1
    Standard cost card to produce 1 unit of a product is as follow;
    Material X: 2kg @ Rs 2.5/kg
    Material Y: 3kg @ Rs 3/kg
    Actual Data:
    Output: 1200 units
    Material X: 2800kgs for Rs 9350
    Material Y: 4200 kgs for Rs 12200
    Required: Compute material price & usage variance

    Question 2
    Budget for the financial year 2021 w.r.t to cost is as under;
    Particulars Per Unit Cost Total Cost
    Direct Material (40kgs@ Rs 70/kg) 2800 17,360,000
    Direct Labour (8 hours @ Rs 250/hours) 2000 12,400,000
    Variable Overheads (60% of labour) 1200 7,440,000
    Budgeted cost for budgeted output 37,200,000

    Actual Results
    Actual Output 5,500 units of finished goods
    Particulars Kgs/Hrs Cost
    Direct Material 231,000 17,325,000
    Direct Labour 39,875 10,686,500
    Variable Overheads 39,875 5,582,500
    33,594,000

    Required : Calculate all possible variances

    FROM THE DESK OF AHMED RAZA MIR (FCA) 1


    Practice
    Manual
    Cost & Management Accounting

    Question 3
    Following is the budget for the first quarter of 2015:
    Annual Production 70,000 Units of Finished Goods
    First quarter production 40%
    Direct Material 14,000,000 (Rs 50/kg)
    Direct Labour 12,600,000 (Rs 30/hour)
    Actual Results
    Actual Output 30,000 Units of Finished goods

    Particulars Kgs/Hrs Rate


    Direct Material 309,000 For jan 55
    For Feb & March 58

    Direct Labour 441,000 For jan 28


    For Feb & March 31

    Required: Calculate all possible Variances

    Question 4

    Following is the standard for the production of 1 unit of FG:

    Raw Material 40 Kg @ Rs 125 /Kg

    Labour 20 Hours @ Rs 35 /hr

    VOH 20 Hours @ Rs 16 /hr

    Actual output 90,000

    FROM THE DESK OF AHMED RAZA MIR (FCA) 2


    Practice
    Manual
    Cost & Management Accounting
    Actual Cost

    Kg or Hr Rate Cost

    Raw Material 3,870,000 120.00 464,400,000

    Labour 1,728,000 36.00 62,208,000

    VOH 1,728,000 14.50 25,056,000

    Required
    Calculate all possible variances

    Question 5 (Material Loss)


    ABC Ltd, produces a single product. Following inputs are used in the following production;
    Raw material Quantity Rate Amount
    A 5 10 50
    B 3 8 24
    C 2 6 12
    10 86

    Expected loss 14%


    Actual Output = 103200 kgs

    Actual input
    Raw material Quantity Rate Amount
    A 65000 11 715000
    B 35000 7 245000
    C 25000 6.5 162500
    125000 1122500

    Required : Calculate total material, material price and usage variance.

    FROM THE DESK OF AHMED RAZA MIR (FCA) 3


    Practice
    Manual
    Cost & Management Accounting
    Question 6 (Mix & Yield)
    Standard mix to produce 9 kgs:
    Raw material Quantity Rate Amount
    A 5 6 30
    B 5 4.8 24

    10 54

    Actual output = 63,000 kgs


    Actual Input:

    Raw material Quantity Rate Amount


    A 40,000 6.5 260,000
    B 35000 5 175,000

    75000 435,000

    Required: Calculate all possible material Variances.

    Question 7
    4 Raw materials are added to produce product ZZZ for an output at 29.25 kgs following input is required:

    Raw materials Quantity Rate


    A 8 kgs 125
    B 5.6 kgs 200
    C 14 kgs 104
    D 7.4 kgs 160

    Actual output = 260,000 kgs

    FROM THE DESK OF AHMED RAZA MIR (FCA) 4


    Practice
    Manual
    Cost & Management Accounting
    Actual input
    Raw materials Quantity Rate
    A 88,000 kgs 130
    B 52,000 kgs 210
    C 135,000 kgs 96
    D 85,000 kgs 140

    Required : Calculate all possible variances

    Question 8 (O bhai data flex hoga)


    Budgeted data
    output = 80,000 units
    Raw material = 48000 kgs costing Rs 6 million
    Actual
    Output = 90,000 units
    Raw material = 58500 kgs costing Rs 71,37,000
    Required: Calculate material price and usage variance

    FROM THE DESK OF AHMED RAZA MIR (FCA) 5

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