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  • Fabiz II Standard Costing

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    Standard costing involves calculating variances between actual and standard costs for materials, labor, and overhead. For materials, the variances are the material price variance from differences in actual and standard prices, and the material quantity variance from differences in actual and standard quantities. For labor, the variances are the labor rate variance and labor efficiency variance. For overhead, the variances are the price variance and efficiency variance.

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    Standard costing involves calculating variances between actual and standard costs for materials, labor, and overhead. For materials, the variances are the material price variance from differences in actual and standard prices, and the material quantity variance from differences in actual and standard quantities. For labor, the variances are the labor rate variance and labor efficiency variance. For overhead, the variances are the price variance and efficiency variance.

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    53 views1 page

    Fabiz II Standard Costing

    Uploaded by

    rux_l_andra
    Standard costing involves calculating variances between actual and standard costs for materials, labor, and overhead. For materials, the variances are the material price variance from differences in actual and standard prices, and the material quantity variance from differences in actual and standard quantities. For labor, the variances are the labor rate variance and labor efficiency variance. For overhead, the variances are the price variance and efficiency variance.

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    STANDARD COSTING Material Cost Variance MC = QrPr - QsPs, formed of: Material price variance: MP = Qr(Pr - Ps) And

    Material quantit variance: MQ = (Qr-Qs)Ps Labor Cost Variance !C = "r#r - "s#s , formed of: !a$or rate variance: !# = "r(#r - #s) And !a$or efficienc variance: !% = ("r - "s)#s Overhead cost variances &v = PrQr -PsQs, , formed of: Price variance: &vP = (Pr - Ps)Qs and %fficienc variance: &v% = Ps(Qr - Qs) A""%'"(&') "*e cost of t*e standard quantit is calculated as PsQr Qr = real quantit Qs = standard quantit Pr = real price Ps = standard price #s = real la$or rate #s = standard la$or rate "r = real tariff "s = standard tariff

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