Pl suggest how to calculate Area of tile in following standard costing problem -
A company manufacturing a special type of fencing tile 12”X 8” X ½” used
a system of standard costing. The standard mix of the com pound used for making the tiles is :-
1,200 kg. of material A @ Rs.0.30 per kg.
500 kg. of Material B @ Rs.0.60 per kg.
800 kg. of Material C @ Rs.0.70 per kg.
The compound should produce 12,000 square feet of tiles of 1/2” thickness. During a period in which
1,00,000 tiles of the standard size were produced, the material usage was:-
Kg Rs
7,000 Material A @ Rs.0.32 per kg. 2,240
3,000 Material B @ Rs.0.65 per kg. 1,950
5,000 Material C @ Rs.0.75 per kg. 3,750
15,000 7,940
Present the cost fi gures for the period showing Material price, Mixture, Sub-usage Variance.
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