BANITOG, BRIGITTE C.

BSA 211

STANDARD COSTS
REQUIREMENT 1

4,000 chopping blocks -> 2.5 board feet/1 chopping block

Standard price = 1.80/board foot

4,000 chopping blocks x 2.5 board feet x 1.80

= 18,000

Cost that was incurred = 18,700

Standard cost = 18,000

18,700 – 18,000

= 700 was more than paid that was by the standards

REQUIREMENT 2

Materials price variance = AQ (AP-SP) Materials price variance = AQ (AP-SP)

18,700 / 11,000 board feet = 1.70 = Actual price (AP) = 11,000 (1.70 – 1.80)
Standard price (SP) = 1.80 = 11,000 X -0.10
Actual Quantity (AQ) = 11,000 board feet = (1,100)
Standard Quantity = 10,000 board feet
Materials Quantity Variance = SP (AQ-SQ)

Actual Quantity (AQ) = 11,000 ft

Standard Quantity (SQ) = 4,000 boards x 2-5 ft/board = 10,000 ft

Standard Price = 1.80

MQV = SP (AQ-SQ)

= 1.80 (11,000 – 10,000)

= 1.80 (1,000 ft)

= 1,800

REQUIREMENT 1

Standard labor hours in given output

= (20,000 discs/ 60) x 24 minutes

= 8,000

Total direct labor cost = 8,000 x 6.00

= 48,000
Spending variance = 48,000 – 49,300

= - 1,300

REQUIREMENT 2

Labor rate variance = 8,500 (6.00 – 5.80)

= 1,700

Labor efficiency variance = 6.00 (8,000 – 8,500)

= -3,000

Actual rate per hour = 49,306/8,500

=5.80

REQUIREMENT 3

Variable overhead efficiency variance = 4 (8,000 – 8,500)

= -2,000

Actual overhead rate = 39,100 / 8,500

= 4.6

Variable overhead rate variance = 8,500 (4 - 4.6)

= -5,100