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Vulcan Supplements makes fuel additives for use in motor racing and uses a standard costing system to monitor both sales and production costs to evaluate
Vulcan Supplements makes fuel additives for use in motor racing and uses a standard costing system to monitor both sales and production costs to evaluate performance. The budgeted and actual prime cost data for the past month when 50,000 litres were produced is shown below:
Standard prime costs: :iriish Elleri'pt Standard Material Input cost oer unit 0.2 litres 53.50 per litres Standard labour costs 0.05 hour 543.00 per hour 5 2.40 Total standard product cost per unit 5 3.10 Actual costs: Units producedthis period: 50.000 litres Direct materialpurchased: 20,000 Total cost: 5 ?2.000 Direct material used in production: 10,2 00 Cost per litre: 53.60 Direct labour hours and total cost: 2.3?5 Total cost: 5 114.5?0 RequiredStep by Step Solution
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