Standard cost card

nosaj

When asked to complete a standard cost card, what exactly i need to look for to complete the card.

SandyHood

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

nosaj

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.

A-Vic

has anyone an example of this please?

timgriff

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...)

SandyHood

Tim
Yes of course you do.

timgriff

Brilliant thanks Sandy

Andypandy

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.