STANDARD COST CARD question...

gabriellenlewisgabriellenlewis Posts: 128AAT Student

I get the materials row correct but the other two I think i understand but it tells me i'm wrong?!

Please help, thanks.

Answers

  • cmcdcmcd Posts: 14Registered
    Material
    Total cost is £14.00 for 0.35 kg. Therefore cost per unit = 14.00 / 0.35 = £40.00
    Quantity = 0.35 kg
    Cost per unit = £40.00
    Total cost = £14.00

    Labour
    45 minutes = 3/4 of an hour = 0.75 hours. @ £12.00 per hour = £9.00
    Quantity = 0.75 hours
    Cost per unit = £12.00
    Total cost = £9.00

    Fixed overheads
    Fixed overheads are absorbed on a labour hour basis so 1 unit will be absorbed per 0.75 hours.
    Total fixed overheads divided by number of units gives total cost = £63,000 / 12,000 = £5.25
    Therefore cost per unit = £5.25 / 0.75 = £7.00
    Quantity = 0.75 hours
    Cost per unit = £7.00
    Total cost = £5.25

    Total = £14.00 + £9.00 + £5.25 = £28.25
Sign In or Register to comment.