The document provides details on standard costs and actual costs for materials and labor for various production processes. It includes standard mixes, prices, and quantities for materials, as well as standard and actual labor hours, rates, and numbers of workers. Variances are to be calculated for materials and labor based on the standard and actual costs provided for each production scenario.
1. Standard Costing– Assignment VI<br />Q.1 The standard material cost for 100 kgs of chemical ‘X’ is made up of: <br />Component A 30 kg @ Rs. 4 per kg; <br />Component B 40 kg @ Rs. 5 per kg; and <br />Component C 80 kg @ Rs. 6 per kg. <br />In a batch, 500 kgs of chemical ‘X’ were produced from a mix of <br />Component A 140 kgs (cost Rs. 688); <br />Component B 220 kgs (Rs. 1156); and <br />Component C 440 kgs. (Rs. 2660). <br />Calculate material variances. <br />Q.2 A Co. Ltd., manufactures a particular product the standard cost of which is as under: (Calculate variances). <br />MaterialUnitsPriceAmountM11002.00Rs. 200M22001.70Rs. 340Less Normal wastage300- 30Production270Rs. 540<br />Actual result in a period were as follows: <br />MaterialUnitsPriceAmountM12151.80Rs. 387M23852.00Rs. 770600Less wastage-70Production530Rs. 1157<br />Q.3 The standard set for a chemical mixture of a firm is: <br />MaterialStandard Mix.St. price per tonneA40%Rs. 20B60%Rs. 30<br />The standard loss is 10 per cent. During a period 182 tonnes of output were produced from A 90 tonnes (Rs. 18 per tonne) and B 110 tonnes (Rs. 34 per tonne). Calculate variance. <br />Q.4 A Co. manufactures a special tile of 12”×8”×½” size. The standard mix of material used is as follows: <br />1200 kgs A @ 30 paise per kg <br />500 kg B @ 60 paise per kg and <br />800 kg C @ 70 paise per kg. <br />The mix should produce 12,000 square feet of tiles. During a period, 1,00,000 tiles were produced from a mix of the following:<br />7000 kg A (paise 32 per kg); <br />3000 kg B (paise 65 per kg); and <br />5000 kg. C (paise 75 per kg). Compute variances. <br />Q.5 The standard set for output of a company is as under: <br />MaterialStandard MixStandard price per kg.A40%Rs. 4B60%Rs. 3<br />The standard loss is 15 per cent of input. During April 2007, the company produced 1,700 kgs of finished output. The materials details are given below: <br />MaterialOpening StockClosing StockPurchase in AprilA35 kg.5 kg. 800 kg. Rs. 3,400B40 kg.50 kg.1,200 kg. Rs. 3,000<br />Q.6 A gang of workers normally consists of 30 men, 15 women and 10 boys. The standard hourly labour rates are – Men: 80 paise, Women: 60 paise, and boys: 40 paise. In a normal week of 40 hours, the gang is expected to produce 2000 unit of output. <br />During the week ended December 31, 2007, the gang consisted of 40 men, 10 women and 5 boys. The actual wage rates were 70 paise, 65 paise, and 30 paise respectively. 4 hours were lost due to power breakdown, Actual output 1600 units. Compute labour variances. <br />Q.7 A gang of workers normally consists of 10 skilled, 5 semi-skilled and 5 unskilled workers paid at standard hurly rates 75p, 50p, and 40p respectively. In a normal working week of 40 hours the gang is expected to produce 1,000 unit of output. <br />In a certain week, the gang consisted of 13 skilled, 4 semi-skilled and 3 unskilled workers and produced 1,000 units. Actual wages Rs. 450. Actual hours worked 720. Assuming that each worker worked the same hours, compute variances. <br />Q.8 The standard labour and actual labour engaged in a week for a job are as under: <br />SkilledSemi-skilledUnskilledStandard No. of workers32126Standard hourly Rate (Rs.)321Actual No. of workers28184Actual Hourly Rate (Rs.)432<br />During the 40 hour working week, the gang produced 1,800 standard labour hours of work. Compute variances. <br />Q.9 In a factory, 100 workers are engaged and an average rate of wages is Rs. 5 per hour. Standard working hours per week are 40 hours and the standard output is 10 units per hour. During a week in February, wages were paid for 50 workers @ Rs. 5 per hour, 10 workers @ Rs. 7 per hour and 40 workers @ Rs. 4 per hour. Actual output was 380 units. The factory did not work for 5 hours due to breakdown of machinery.<br />Calculate – (i) Labour cost variance; (ii) Labour rate variance; (iii) Labour efficiency variance; and (iv) Idle time variance.<br />Q.10 The standard labour – mix for producing 100 units a of product is:<br /> 4 skilled men @ Rs. 3 per hour for 20 hours<br /> 6 unskilled men @ Rs. 2 per hour for 20 hours<br />But due to shortage of skilled men, more unskilled men were employed to produce 100 units. Actual hours paid for were:<br /> 2 skilled men @ Rs. 4 per hour for 25 hours<br /> 10 unskilled men @ Rs. 2.50 per hour for 25 hours. Calculate labour variances.<br />