Tile Corp is producing two products Black Tile & Grey Tile, the production requires two production...

 

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Tile Corp is producing two products Black Tile & Grey Tile, the production requires two production phases - Cracking & Smoothing. Each production uses the same two materials C150 & P896. The company uses a standard costing system, with the following standards: Standard Materials Required Standard Labour Time С150 Р896 Cracking Smoothing Black Tile 2.5 kgs 8.4 litres 0.33 hours 0.15 hours Grey Tile 4.0 kgs 3.4 liters 0.25 hours 0.25 hours Materials Purchased during the year related to production Actual Cost of Standard Price materials C150 $8,139 $4.35/kg P896 $24,000 $2.40/litre The standard labour rates is $24.30/hour in Cracking & $32.40/hour in Smoothing In September, 3,000 direct labour hours were worked in Cracking at a total labour cost of $6,750 & 2,380 direct labour hours were worked in Smoothing at a total labour cost of $78,540 Production totals for Black Tile were 5,200 & Grey Tile was 5,100 Actual materials used in the production is C150 35,000 & for P896 60,000 Requirements 1. Prepare a standard cost card for both products (Black & Grey), showing both direct materials & direct labour. Assume no overhead (4 marks) 2. Computer the materials price & quantity variance for each material (4 marks) 3. Compute the labour rate & efficiency variances for each operartion (Cracking & Smoothing) (4 marks) Tile Corp is producing two products Black Tile & Grey Tile, the production requires two production phases - Cracking & Smoothing. Each production uses the same two materials C150 & P896. The company uses a standard costing system, with the following standards: Standard Materials Required Standard Labour Time С150 Р896 Cracking Smoothing Black Tile 2.5 kgs 8.4 litres 0.33 hours 0.15 hours Grey Tile 4.0 kgs 3.4 liters 0.25 hours 0.25 hours Materials Purchased during the year related to production Actual Cost of Standard Price materials C150 $8,139 $4.35/kg P896 $24,000 $2.40/litre The standard labour rates is $24.30/hour in Cracking & $32.40/hour in Smoothing In September, 3,000 direct labour hours were worked in Cracking at a total labour cost of $6,750 & 2,380 direct labour hours were worked in Smoothing at a total labour cost of $78,540 Production totals for Black Tile were 5,200 & Grey Tile was 5,100 Actual materials used in the production is C150 35,000 & for P896 60,000 Requirements 1. Prepare a standard cost card for both products (Black & Grey), showing both direct materials & direct labour. Assume no overhead (4 marks) 2. Computer the materials price & quantity variance for each material (4 marks) 3. Compute the labour rate & efficiency variances for each operartion (Cracking & Smoothing) (4 marks)

Answer rating: 100% (QA)

1 Standard Cost Card SNo Product Units Cost per unit Amount a Black Tile Direct Material Cost C150 2... View the full answer