Intermediate T pic uses a standard costing system, which is material stock account being maintained at stan
Question:
Intermediate T pic uses a standard costing system, which is material stock account being maintained at stan¬ dard costs. The following details have been extracted from the standard cost card in respect of direct materials:
8 kg at £0.80/kg = £6.40 per unit Budgeted production in April was 850 units. unit produced if output is measured in terms of units produced. You should always express output in standard hours if the question requires the calculation of overhead efficiency variances.
Frequently questions are set that give you the variances but require calculations of actual costs and inputs (see Questions 18.26-18.30). Students who calculate variances simply by committing to memory a series of variance formulae experience difficulties in answering these questions. Make sure you understand how the variances are calculated, and check with the Students ’ Manual your answers to Questions 18.26, 18.28 and 18.30.
The following details relate to actual materials purchased and issued to production during April, when actual production was 870 units:
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