Standard Costing Flashcards
(25 cards)
Standard
Unit amount
Budget
Total Amount
Total Budgeted Cost
- Should be Incurred for budgeted Production
Budgeted Production x Standard cost per unit
Total Standard Cost
- Should have been incurred for actual production
Actual Production x Standard cost per unit
Purpose of Standard Costing
- Cost Control - lower cost = higher price (Primary Purpose)
- Cost awareness
- Motivation - performance Appraisal
- simply Costing procedures
- Pricing Decisions - SP = cost + profit
- are useful in highlighting variance in management by exception
Costing system
Actual
-M,L,OH x Actual unit Price
Standard
-M,L,OH x Standard unit Price
Normal
- M,L - Actual unit price
- OH - Standard unit price
Variance
S > A = Favorable - Credit
S < A = Unfavorable - Debit
Diposition of Variance
Fave - Debit
Unfave - credit
If significant - Cogs and inventory prorated
not significant - income summary or cogs(silent)
DMV
Actual - Standard = TMV
or PV - QV = TMV
Price or Spending ; Quantity or Efficiency or usage
AP x AQ
SP x AQ
SP x SQ
Price Var
Purchasing Dept
can be Purchase(silent) or Usage (see question or given)
Quantity Var
Production Dept
Quality of materials
defective materials
unskilled worker
poor supervision
DLV
Actual - Standard = TLV
Rate - Time = TLV
Rate or labor spending Var : Time or Efficiency
AR x AHR
SR x AHR
SR x SHR
Labor spending or rate var
HR or supervisor or person responsible for setting labor rate
Worker skill
overtime premiums if premium is added to labor cost account
Labor efficiency or time var
Production Manager
Worker skill
change in worker efficiency imposition of control measure in prod process
Price Variance for 2 or more products
Long method
- Act price - std price = change in price
- Change in price x actual input = variance then total
or
Short method
Actual Cost
- (Actual Input x Standard unit cost)
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Price Variance
Standard unit cost = per material like 50kg/25kg = 2
Mix Variance 2 or more products
Long method
- Actual Input - Standard Input = change in input
- Standard input = Actual total input x Std%
- Std% = Std Input/Material / total standard input
- change in input x standard cost
or
Short Method
Actual Input x Standard unit cost
(Total actual input x ASIC) \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Mix Variance
ASIC = Total Standard input cost
____________________
Total Standard Input
Yield Variance 2 or more products
Long method
- Std output = total actual input x yield%
- yield% = std Production / std input
- Std production - actual production = var
- var x ASOC = yield Var
- ASOC = Std input cost / std production
or
Short Method
Total Actual Input x ASIC
( Standard Cost)
_______________________
Yield Variance
ASIC = Total Standard input cost
____________________
Total Standard Input
TMV or TLV 2 or more
total = PV,MV, YV add or deduct according to fave or unfave
AMC/ALC = Actual Input x Actual Cost SMC/SLC = Actual output x ASOC
ASOC = Standard Input Cost
____________________
Standard Prod or Output
SHORT METHOD 2 or more
Price Var
Actual Cost - (Actual Input x Standard unit cost) \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Price Variance
Mix Var
Actual Input x Standard unit cost
(Total actual input x ASIC) \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Mix Variance
Yield Var
Total Actual Input x ASIC
( Standard Cost)
_______________________
Yield Variance
ASIC = Total Standard input cost
____________________
Total Standard Input
1 Way OH
TFOH = AFOH + SFOH
SFOH = var and fixed oh per unit x std hrs
std hrs = req hr / u x actual prod
2 way oh
controllable Volume
AFOH BASH
(BASH) (SFOH)
or
Normal Capacity
(Std hr)
\_\_\_\_\_\_\_\_\_\_\_\_
xx
x std FFOH/Unit
\_\_\_\_\_\_\_\_\_\_\_\_\_\_
xx
BASH
std var/ unit x std hrs + Budg FOH (Std ffoh/unit
x Normal or budg hr
BAAH
std var / unit x actual hr + Budg FOH (Std ffoh/unit
x Normal or budg hr
3 way
Spending
AFOH
BAAH
Var eff Var
BAAH
BASH
Volume Var (same sa 2way)
BASH
SFOH
