St.

Andrew’s College TYBAF

STANDARD COSTING

Q.1 The following std is sold for 2 units of finished goods.

Direct Labour – 4 hours @ 24.5 per Hours,

Actual production -10000 units,
Direct labour -20350 hours @ 24.6 per hours Calculate possible Labour Variance.

Q.2 Following data is available from the records of a manufacturing company:

Standard per unit: Materials: 6 Kg @ Rs.4 per kg.
Labour: 4 Hours @ Rs.4 per hour.
Production for the month: 12,000 units.
Actual material price per Kg: Rs.4.50
Material consumed during the month: 78,000 kg.
Direct labour worked: 48,000 hrs.
Actual labour rate per hour: Rs.3.5.
Calculate possible material and labour variances.

Q.3. The following details relating to a product are made available to you:
Standard Cost Per Unit: Materials: 50 Kg@ Rs.40 per kg.
Labour: 400 hours @ Rs.1 per hour.
Actual Cost: (For an output of 10 Units)
Material: 590 Kg @ Rs.42 per kg.
Labour: 3,960 hours @ Rs.1.10 per units.
Calculate possible Material and Labour Variances.

Q.4. The Standard cost card for a product shows:

Material cost 2 kg @ Rs.2.50 each.
Wages 2 hrs @ Rs.10 each.
The actuals which have emerged from business operations are as under: Production: 8,000 units.
Material consumed: 16,500 kg. @ Rs.2.40 each.
Wages paid 18,000 hours @ Rs.8 each.
Calculate the appropriate material and labour variances.

Q.5. The standard cost card for one unit of production shows the following:
Materials: 4 pieces @ Rs.5 each
Labour : 10 hours @ Rs.1.50 per hour
5,700 units of product were manufactured during the month of March with the following materials and Labour
cost.
Material: 23,000 pieces @ Rs.4.95 each
Labour: 56,800 hours @ Rs.1.52 per hour
Calculate appropriate material and labour variances.

Q.6. Calculate material and labour variances from the following data:
Standard data for 5 units of product A:
Material: 40 Kg @ Rs.25 per kg.
Labour: 100 hours @ Rs. 2.50 per hour.
Actual data are: Production: 1000 units
Materials: 7,840 Kg @ Rs.27 per kg.
Labour: 19,800 hours @ Rs.2.60 per hour.

Compiled By Ritesh Sir

St. Andrew’s College TYBAF
Q.7. A manufacturing concern, which has adopted standard costing, furnishes the following information:
Standard: Material for 70 Kg finished products: 100 Kg.
Price of materials: Rs.1 per kg.
Actual: Output: 2,10,000 kg.
Material used: 2,80,000 kg.
Cost of material: Rs.2,52,000.
Calculate possible material variances.

Q.8. From the following data calculate possible material variances.

Quantity off material purchased 3000 units
Value of material purchased Rs.9,000
Standard quantity of materials required per ton of output 30 units
Standard rate of material Rs.2.50 per unit.
Opening stock of material Nil
Closing stock of material 500 units
Output during the period 80 tons.

Q.9. The standard cost of the product ‘SLR’ revels:

Standard: 2 Kg of S @ Rs.2 per kg.
1 Kg of L @ Rs. 6 per kg.
Direct labour: 3hrs @ Rs.6 per hour.
Actual Data:
Material: 19,000 Kg of S @ Rs.2.20 per kg.
10,000 Kg of L @ Rs.5.60 per kg.
Labour: 28,500 hours @ Rs.6.40 per hour
Actual Production: 9,000 units. Calculate possible material and labour variances.

Q.10. The following standards have been set to manufacture a product.

Direct Material: 4 units of X @ Rs.4 per unit
6 units of Y @ Rs.3 per unit
Direct labour: 3 hours @ Rs.2 per hour.
Production & Sales: 6,000 units
Actual Material: 25,000 units of X @ Rs.4.20 per unit
36,000 units of Y @ Rs.2.70 per unit
Direct Labour: 17,000 hours @ Rs. 2.20 per hour
Calculate possible material and labour variances.

Q.11. The standard cost card of the product shows the following.
Material A: 2Kg @Rs.20 per kg. ,
Material B: 3 Kg @ Rs.15 per Kg.
Labour: 2 hours @ Rs.25 per hour.
Actual data: Production: 10,000 units
Actual consumption: Material A: 18,500 Kg for Rs.4,07,000.
Material B: 30,500 Kg for Rs.4,80,375.
Labour: 20500 hours for Rs.4,92,000.
Calculate: 1) MCV, 2) MPV, 3) MUV. And 1) LCV, 2) LEV, 3) LRV

Q.12. The following details are available from the records of KBC Ltd.
Standard labours per 1,000 units were as follows:
Skilled labour: 500 hours @ Rs.40 per hour.
Semiskilled Labour: 400 hours @ Rs.16 per hour.
Unskilled Labour: 800 @ Rs.24 per hour
Compiled By Ritesh Sir
St. Andrew’s College TYBAF
Actual Production was 7,500 units for which the actual labour spent were:
Skilled labour: 3,900 hours @ Rs.44 per hour.
Semiskilled Labour: 3,225 hours @ Rs.18 per hour.
Unskilled Labour: 6,900 hours @ Rs.22 per hour
Calculate possible Labour Variances.

Q.13. Aditya Ltd produces an article by blending two basic raw materials. It operates standard costing system and
the following standards have been set for raw materials and labour for one unit of output:
Material ‘A ’: 5 Kg @ Rs.10 per Kg.
Material ‘B’ : 8 Kg @ Rs.12 per Kg.
Labour: 4 hrs @ Rs.5 per hr.
Actual position of purchases and stock is as under:
Purchases: Material ‘A’ 9,800 Kgs @ Rs.9 per Kg.
Material ‘B’ 15,500 Kgs @ Rs.13 per Kg.
Stock position in Kgs Opening Stock Closing Stock
Material A 600 Kgs 200 Kgs
Material B 750 Kgs 150 Kgs
Actual Wages paid: 8,200 Hrs @ Rs.4.50 per hr.
Actual output: 2,000 units.
Calculate the following variance (Use FIFO Method for Materials):
MCV; MUV; MPV; LCV; LEV; LRV.

Q.14 From the following particulars, calculate material variance including material sub-variances. The standard Mix
required for a Product is, Material A – 60% at standard price of Rs. 40 per kg and Material B – 40% at standard price
of Rs. 60 per kg. Normal Loss is 10% of total input.
Actual output obtained during the period was 3,600 units for which Actual consumption of materials are:
Material A- 2,550 kgs @ Rs. 42 per kg.
Material B- 1,750 kgs @ Rs. 59 per kg.

Q. 15. S.V. Ltd. has furnished you the following:

Particulars Budget Actual
No. Working Days 25 27
Production in units 20,000 22,000
Fixed Overheads (Rs.) 30,000 31,000
Budgeted Fixed Overhead rate is Rs. 1 per hour. In a month, the actual hours worked were 31,500.
Calculate Possible Fixed Overheads Variances.

Q. 16. ABC Ltd has furnished the following information:

Particulars Budget Actual
Fixed Overheads 10,000 12,000
Production (Units) 2,000 2,100
Standard time per unit (Hrs.) 10 -
Actual Hours Worked - 22,000
Calculate Possible Fixed Overhead Variances.

Q.17. The following information is available from the records of S Ltd:

Particulars Budget Actual
Output (units) 400 425
Hours 8,000 8,600
Fixed Overheads (Rs.) 40,000 47300
Variable Overheads (Rs.) 64,000 73,100

Compiled By Ritesh Sir

St. Andrew’s College TYBAF
Calculate: Fixed overheads cost variance; Fixed overhead expenditure variance; Fixed overhead volume
variance; Variable overhead variance; Variable overhead expenditure variance; variable overhead efficiency
variance.

Q.18. The following data is given

Particulars Budget Actual
Output (units) 5,000 4,500
Hours 10,000 9,900
Variable Overheads (Rs.) 10,000 8,910
Calculate: Variable overhead variance; Variable overhead expenditure variance; Variable overhead
efficiency variance.

Q.19. Vivek Ltd. has furnished you the following information for the month of August 2011:
Particulars Budget Actual
Output (units) 30,000 32,500
No. of working hours 30,000 33,000
Fixed Overheads (Rs.) 45,000 50,000
Variable Overheads (Rs.) 60,000 68,000
Working Days 25 26
Calculate: possible Overhead Variances.

Q.20. Calculate the variances from the following data:

Particulars Budget Actual
Working days 20 22
Output per man hour in units 1 0.9
Hours per day 8,000 8,400
Variable Overheads (Rs.) 1,60,000 1,68,000

Q.21. The following information was obtained from the records of a manufacturing unit:
Particulars Budget Actual
Production (units) 4,000 3,800
Working Days 20 21
Fixed Overheads (Rs.) 40,000 39,000
Variable Overheads (Rs.) 12,000 12,000
Calculate: Fixed overheads cost variance; Fixed overhead expenditure variance; Fixed overhead volume
variance; Variable overhead variance; Variable overhead expenditure variance.

Q.22. Calculate possible sales variances from the following data:

Particulars Budget Actual
Kg. Rate Rs. Kg. Rate Rs.
Product A 50,000 10.5 5,25,000 52,000 11 5,72,000
Product B 20,000 12 2,40,000 16,000 11.75 1,88,000
Product C 6,000 15 90,000 5,000 15 75,000
Product D 4,000 16 64,000 5,000 16 80,000
9,19,000 9,15,000

Q.23. Calculate possible sales variances from the following data.

Budgeted Sales: Product A: 10000 units @ Rs.15 per unit.
Product B: 8,000 units @ Rs. 20 per unit.
Product C: 6,000 units @ Rs.25 per unit.
Actual Sales: 25,000 units in the ratio of 5:3:2 between A, B, and C respectively @ Rs.16,
Rs.20.5 and Rs.24.5 per unit each.

Compiled By Ritesh Sir