- 20 Marks
Question
The details below relate to a product (BETA) and are to be used in the revision of its standard cost:
| Item | Standard Price/Rate |
|---|---|
| Material | |
| 30kg of B35 | ₦200/kg |
| 50 units of K010 | ₦50/unit |
| 20 units of K035 | ₦100/unit |
| Direct Labour | |
| Machine Operations: 50 hours | ₦120/hour |
| 30 hours | ₦105/hour |
| 27 hours | ₦80/hour |
| Packaging: 12 hours | ₦96/hour |
Production Overhead:
- Labour hour rate: ₦9/hour
- Machine hour rate: ₦7/hour
Departments X, Y, and Z are for operations while department P is for packaging. The batch quantity is 200, and the revision date is April 30, 2020.
Required:
Prepare a STANDARD COST CARD for the product (Beta).
Answer
- Tags: Cost Card, Direct Labour, Materials, Overheads, Standard Costing
- Level: Level 1
- Topic: Costing Methods
- Series: NOV 2022
- Uploader: Theophilus