1. The following Standard cost information relates to a product of SD Limited:

Variable costs

Raw material at 16 per kg 4.00

Direct labour at 24 per hour 8.00

Variable overhead at 10 per labour hour (10/3, rounded) 3.33

Overhead costs

Fixed overhead (14/3 rounded to nearest pence) 4.67 Total standard cost 20.00

The actual cost of producing 23,200 units was 492,633.76

The company used 5,568 kg of raw material in production, at a cost 2% higher than the Standard.

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Actual labour time is 21 minutes per unit, producing a total labour cost of 193,256.

Variable overhead actually cost 10.90 per hour.

The standard for fixed overhead was based on a level of production 800 units higher than the actual level achieved.

The actual fixed overhead cost was 120,000.

Required:

1. Produce a reconciliation of standard cost to actual cost including both cost and usage / efficiency variances. (11 marks)

2. Produce a statement calculating the total actual cost of production, showing the individual component costs. (3 marks)