Standard costing

Options
Primble
Primble Registered Posts: 734 Epic contributor 🐘
how do you wok out that standard cost if you are given budgeeted and actual costs?

Comments

  • ckane4
    ckane4 Registered Posts: 14 New contributor 🐸
    Options
    Just take your budgeted cost (say direct materials are £10,000) and divide by budgeted quantity (say 5,000kgs) - that gives a "standard cost" of £2 per kg. So then if you were to estimate how much it would cost you to produce 7,000kgs worth you would assume £14,000. That would be your "flexed budget/standard" amount which you would then compare against your actual cost for the same quantity when completing your variance analysis.
  • Londina
    Londina Registered Posts: 814 Epic contributor 🐘
    Options
    Primble wrote: »
    how do you wok out that standard cost if you are given budgeeted and actual costs?

    Primble, recheck Sandy's answer to your previous post, it clarifies a lot!
    http://forums.aat.org.uk/showthread.php?t=22485
  • Primble
    Primble Registered Posts: 734 Epic contributor 🐘
    Options
    thankyou soooooooo much
Privacy Policy