Standard-Costing-and-Variance-Analysis.xlsx - Standard a performance bench mark or norm used Establishing Cost Standards Past Historical Records

Standard-Costing-and-Variance-Analysis.xlsx - Standard a...

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Standard a performance bench mark or norm used Establishing Cost Standards Past Historical Records Engineering Studies Engineering Studies Direct Material Standards Standard Quantity x Standard Prices Direct Labour Stnadards Standard Quantity x Standard Prices Overhead Standards cannot be directly observed and studied and traced to Standards should be developed by group, di isang tao lang after determining the input 1 2601 Formulas: Total Variance Total Actual Cost Incurred - Total Standard Cost applied to Output P AP Actual Price per unit AQ Actual Quantity SP Standard (Allowed) Price per unit SQ Standard (Allowed) Quantity Formula: (Standard Input R Input AP x AQ Output SP x SQ Total Variance [AP x AQ] - [SP x SQ] Price Variance (AP - SP) x AQ Usage Variance (AQ - SQ) x SP Actual QTY - Standard Qty @ Standard P Material Price Variance (AP - SP) x AQ Actual Price - Standard Price x Actual Qu Actual Quantity X Actual Price - Actual Q Material Quantity Variance (AQ - SQ) x SP Actual Quantity used @ Standard Price - Calculate MPV @ Point of Purchase When Materials are used Labor Rate Variance (AP-SP) x AQ (AP x AQ) - (SP x AQ) Favorable if Actual is less than Standard Labor Efficiency Variance (SP X AQ) - (SP X SQ) (AQ - SQ) x SP
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It is always favorable for variance if Actual is less than Standard
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o units of output Produced Required x Actual Output) Price uantity Quantity x Standard Price - Standard Quantity Allowed @ Standard price
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for computing cost of product, a standard costing system doest not need to keep track of actu favorable variable oh spending var = paying lower than budgeted var oh efficiecny = measures efficiency wc cost allocation base is used var oh efficiency var = efficiency variance for direct cost items unfavorabel oh efficiency variance = used more than planned allocation never an efficiency variance for fixed cost production-volume var = when actual level of denominator favorable production volume variance arise when mftg capcity planned for is not used price var = diff bet price paid for vs standard price for inputs usage var = diff bet qty of inputs used and standard qty allowed for output point of purch model calculates? diff bet actual wages and standard wages is labor efficiency variance labor rate var diff bet actual var oh and budget var oh based upon actual hours is var oh spending var diff bet var oh for actual and standard oh is the var efficency var oh eff var is related only to var oh (Assumption for Board exam) (pero sa turo ni drury not only Standard cost card is prepared after mftg standard have ben developed for dm, dl, oh essence of var analysis is to captura a departure from what was expected
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ual cost r dapat y variable oh)
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Units Cost Cost per Unit Actual Output $ 9,800.00 Budgeted Output $ 10,000.00 Standard Material Input Required 1.00 Yard @ $ 2.00 Raw Mat Purchases 12,000.00 Yards @ $ 25,200.00 $ 2.10 Actual Materials Used 10,560.00 yards @ Standard Output per Labor Time $ 2.00 Standard Labor Rate/Hr $ 50.00 Actual Direct Labors 4,950.00 hours $ 272,250.00 $ 55.00 Material Price Variance: Actual Quantity @ Actual Price Actual Quantity @ Standard Price AP x AQ SP x AQ 12,000 @ $2.1 25,200.00 12,000 @ $2 24,000.00 24,000.00 25,200.00 (1,200.00)
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