3.5 apr%2029%20examples

3.5 apr%2029%20examples - ACIS 222 Lecture Examples...

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ACIS 222 Lecture Examples Standard Costing Example 1: Handicrafts Ltd Handicrafts Ltd Cost of Goods Manufactured – Basket 679 for the year ended 31 December Budgeted Actual Units of production 20 000 21 000 Direct Materials: Simulated bamboo 10 m per basket @ 20c per m $ 40 000 214 200 m 1 @ 19c per m $ 40 698 Direct Labour 0.75 hours per basket @ $6 per hour 90 000 16 800 hours @ $6.25 per hour 105 000 Variable Overhead: Indirect Materials 10 000 11 000 Other 5 000 4 800 Total Variable Overhead $ 15 000 $ 15 800 Fixed Overhead: Indirect Labour 25 000 26 000 Depreciation 10 000 10 000 Utilities 7 000 7 302 Other 3 000 3 100 Total Fixed Overhead $ 45 000 $ 46 402 Total Overhead $ 60 000 $ 62 202 Cost of Goods Manufactured $190 000 $207 900 Cost Per Unit $ 9.50 $ 9.90 1 250 000 m of simulated bamboo were purchased at 19c per metre; however, only 214 200 m were put into production in the period.
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ACIS 222 Standard Costing Examples Page 2 Standard Cost Card – Basket 679 Direct materials: 10 m of simulated bamboo @ 20c per metre $2.00 Direct labour: 0.75 hours for each basket @ $6 per hour 4.50 Manufacturing overhead applied on the basis of direct labour hours: Variable overhead : $1 per direct labour hour × 0.75 hours per unit 0.75 Fixed overhead : $3 per direct labour hour × 0.75 hours per unit 2.25 Standard Cost Per Unit $9.50
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This note was uploaded on 12/23/2009 for the course BCOM ACIS 222 taught by Professor Neilcrombie during the Spring '09 term at Canterbury.

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3.5 apr%2029%20examples - ACIS 222 Lecture Examples...

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