cost accounting

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Meekha (Querist)
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25 April 2010 Sir, can you please help me to solve the given problems?
1.a factory where standard costing is followed, 4600kg of materials at rs.10.5/kg were actually consumed resulting in a price variance of rs.4800(A) and usage variance of rs.4000(F). the standard cost of actual production is_____(100,000;96000;120000)ans given is 100,000.

2.capacity usage ratio of a production dept is 90% activity ratio is 99% what is the efficiency ratio?(120, 110, 90)ans=110 how sir?

3.output of 3 different products are 20000kg, 15000kg, 15000kg.costs are in proportion of 4:6:7.cost per equivalent unit is?(10, 7, 5)ans=5 please help me Sir.

CA. PRASAD

CA. PRASAD (Expert)
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26 April 2010 1. Material Cost Var = Mat. Price Var. + Mat. Usage Var.
= 4800 (A) + 4000 (F) = 800 (A)
It means actual cost is incresaed by Rs. 800 as compare to Standard Cost.
.'. Standard Cost = Actual cost - 800 (A)
= (4,600 * 10.5)-800
= 47500.

Meekha

Meekha (Querist)
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01 May 2010 But in choice,this option is not there. So is it that they have gone wrong?please guide me to solve the rest of the problems also sir.

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