In a factory where standard costing is followed, 9600 kgs 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 Rs. ??????
In a factory where standard costing is followed, 9600 kgs 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 Rs. ??????
Std Price
(X-10.5)*9600=-4800
X=10
Std usage
(Y-9600)*10=4000
Y=10000
Total Variance
-4800+4000=-800
Total Std cost =10000*10 = 100000
Total Actual Cost = 9600*10.5 = 100800
This is not a final level question, something is missing in this question..
I would suggest to go through this link and watch his standard costing videos..
try to stick to the chart, that chart is sufficient for standard costing..
Complete costing class for CA Final free of cost.....
https://www.youtube.com/watch?v=zkJuh0Y82sA&list=PLMAiw-CAACZSr0MckJlMrvOQhWKBib6fu
good answer!
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