CUPTER $5$ Standard Costing $-$ Vartanot Analyals $-129$

QUESTION

The following report was presented to the management of Langford Lid;

$\backslash$table$[[$Quarter $1],[\backslash$table$[[$Planned sales $10,000$ units$],[$Standard cost of sales$],[$Standard profit$]],,\backslash$table$[[$E$],[840,000],[640,000],[200,000]]],[\backslash$table$[[$Variances$],[$Sales margin quantity$],[$Sales margin price$],[$Materlal price$],[$Material usage$],[$Labour rate$],[$Labour efficiency$]],\backslash$table$[[10,200],[6,500],[8,000],[40,700]],\backslash$table$[[$F$],[$E$],[9,200],[12,300]]]]$

Standards for $1$ unit of this product are;

Materials $-2$ coils at $17$ per coil

Labour $-2$ hours at $4$ per hour

Actual production achicved in the quarter $-12,000$ units

REQUIRED

$($a$)$ Calculate:

$(6)$ the quantity of units sold

$(10)$ the actual selling price per unit

$($iii$)$ the quantity of coils used

$($iv$)$ the price paid per coil for material

$($v$)$ the time taken for production

$($vi$)$ the actual labour hour rate

$(15$ marks$)$

$($b$)$ For this report to be useful to the management of Langford Ltd$,$ it must satisfy certain conditions. Discuss two such conditions.

$(5$ marks$)$

$($Total $20$ marks$)$

$($LCCI Series $4$: $1989)$