Tartan & Company uses a standard costing system. During the month of May 2008, the following...

 

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Tartan & Company uses a standard costing system. During the month of May 2008, the following figures apply: Standard cost per unit a) b) c) d) f) g) h) i) Direct material Direct labour based on 12 000 units budgeted output 6.1 metres @ $5.50 per metre 2.75 hours @ $15 per hour Actual cost of 12 500 units produced 73 750 metres for $427 750 31 250 hours @ $16.20/hour Calculate the cost of materials actually used to produce one unit. Calculate the actual direct labour cost of producing 12 500 units. Calculate the standard cost of the standard quantity of materials required for 12 500 units produced. Calculate the standard cost of the standard labour hours needed to produce 12 500 units. [1] Calculate the difference between actual and standard direct material costs of producing 12 500 units and state whether the variance is favourable or unfavourable. [1] [1] [1] [2] Calculate the difference between the standard and actual direct labour costs of producing 12 500 units and state whether the variance is favourable or unfavourable. [2] State two possible reasons for your answers to e) and f). [4] Calculate the standard total cost of producing 12 500 units, assuming that materials and labour are the only cost of production. [2] Calculate the difference between standard total cost and actual total cost of producing 12 500 units. Explain why the cost accountant needs more information than is given by the answers to h). [2] E Tartan & Company uses a standard costing system. During the month of May 2008, the following figures apply: Standard cost per unit a) b) c) d) f) g) h) i) Direct material Direct labour based on 12 000 units budgeted output 6.1 metres @ $5.50 per metre 2.75 hours @ $15 per hour Actual cost of 12 500 units produced 73 750 metres for $427 750 31 250 hours @ $16.20/hour Calculate the cost of materials actually used to produce one unit. Calculate the actual direct labour cost of producing 12 500 units. Calculate the standard cost of the standard quantity of materials required for 12 500 units produced. Calculate the standard cost of the standard labour hours needed to produce 12 500 units. [1] Calculate the difference between actual and standard direct material costs of producing 12 500 units and state whether the variance is favourable or unfavourable. [1] [1] [1] [2] Calculate the difference between the standard and actual direct labour costs of producing 12 500 units and state whether the variance is favourable or unfavourable. [2] State two possible reasons for your answers to e) and f). [4] Calculate the standard total cost of producing 12 500 units, assuming that materials and labour are the only cost of production. [2] Calculate the difference between standard total cost and actual total cost of producing 12 500 units. Explain why the cost accountant needs more information than is given by the answers to h). [2] E

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a Direct material 61 metres 550 per metre 3355 Direct labour 275 hours 15 per hour 4125 Total cost 3355 4125 7480 b The actual direct labor cost is ca... View the full answer