cost accounting

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Meekha (Querist)

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)

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)

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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