# Standard cost card

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Registered Posts: 20 New contributor 🐸
When asked to complete a standard cost card, what exactly i need to look for to complete the card.

• Registered, Moderator Posts: 2,034 mod
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Draw up a table with 4 columns
1. The inputs, raw materials (could be 2 or even 3), direct labour, fixed overhead
2. The amount of input needed e.g 5 kgs or 6 hours
3. The cost per unit of input e.g. £20/kg or £13/hr
4. The value (e.g. the £100 (5kg x £20/kg) for material)

Then add up the value column to find the standard cost per unit
Sandy
sandy@sandyhood.com
www.sandyhood.com
• Registered Posts: 20 New contributor 🐸
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sandyhood wrote: »
draw up a table with 4 columns
1. the inputs, raw materials (could be 2 or even 3), direct labour, fixed overhead
2. the amount of input needed e.g 5 kgs or 6 hours
3. the cost per unit of input e.g. £20/kg or £13/hr
4. the value (e.g. The £100 (5kg x £20/kg) for material)

then add up the value column to find the standard cost per unit
thanks again sandy i was going through past paper for june 2008 and was not sure what to put in, i will stuck this in my brain.
• Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
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has anyone an example of this please?
• Registered Posts: 55 Regular contributor ⭐
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quick question re the above, when working out standard cost of one unit do you divide fixed overheads by budgeted no. of units?? (as opposed to absorption which is based on hours x BOAR etc...)
• Registered, Moderator Posts: 2,034 mod
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Tim
Yes of course you do.
Sandy
sandy@sandyhood.com
www.sandyhood.com
• Registered Posts: 55 Regular contributor ⭐
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Brilliant thanks Sandy
• Registered Posts: 526 Epic contributor 🐘
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I always find it helps to do a standard cost card form the offset in my workings, regardless of whether we're asked for one or not - it just makes things much quicker & clearer.