COST ACCOUNTING
STANDARD COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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RM1, 250 F
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RM1, 150 F
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RM1, 250 UF
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RM1, 150 UF
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Detailed explanation-1: -(ii) When Standard and actual times of the labour mix are different : Changes in the composition of a gang may arise due to shortage of a particular grade of labour. It may be calculated as follows : LMV = (RSH-AH) x SR Where, Revised Standard Hour (RSH) = Total Actual Hour/ Total standard hour X actual hour.
Detailed explanation-2: -14 (Adverse) (b) Calculation of Material usage Variance : Material usage variance = Standard quantity of material-Actual quantity of material x Standard price per unit.
Detailed explanation-3: -MPV = MATERIAL PRICE VARIANCE. MUV = MATERIAL USAGE VARIANCE. MMV = MATERIAL MIX VARIANCE. MSUV = MATERIAL SUB USAGE VARIANCE.
Detailed explanation-4: -Standard Quantity SQ The quantity of material required for manufacturing the product. It may be expressed for one or more units of output. Standard Material required for producing 1 unit is 10 kg. Standard output is 120 units and the material required for the same is 1, 200 kg.