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Standard Costing Practice Questions Final

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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ShehrozST
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Download as PDF, TXT or read online on Scribd
361 views

Standard Costing Practice Questions Final

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.

Uploaded by

ShehrozST
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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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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