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Kolkata -6
Thursday 5 March 2015

STANDRAD COSTING UNSOLVED QUESTIONS IN THE CLASS_Solved_Question

02:09 | Posted by | | Edit Post

Question 1: The following information has been extracted from the books of Goru Enterprises which is using standard costing system:
Actual output
= 9,000 units
Direct wages paid
= 1,10,000 hours at ` 22 per hour, of which 5,000 hours, being idle time, were not recorded in production
Standard hours
= 10 hours per unit
Labour efficiency variance
= ` 3,75,000 (A)
Standard variable Overhead
= ` 150 per unit
Actual Variable Overhead
= ` 16,00,000
You are required to calculate:
           (i)  Idle time variance.
          (ii)  Total variable overhead variance.
         (iii)  Variable overhead expenditure variance.
         (iv)  Variable overhead efficiency variance.       (ICAI)
Solution:- Basic Workings
Actual Output
9,000 units
Idle Time
5,000 hrs
Production Time(Actual)
1,05,000 hrs
Standard Hours for Actual Production
90,000 hurs
(10 hours/unit X 9,000 units)

Labour efficiency variance


= 3,75,000(A)

= Std.Rate
=Standard cost of Standard Time for Actual Production – Standard Cost of Actual Time
OR
=Std. Rate X(Std. Hours –Actual Hours Worked)
=Std. Rate X (90,000 hrs – 1,05,000 hrs)
= ` 25
Standard Variable Overhead
= ` 150/umit
Standard Hours
= 10 hrs/unit
Standard Variable Overhead Rate/hr
=`150/ 10 hrs

=` 15/hr
                Computation of Requirements

(i)          Idle Time variance
= Standard Rate per Hour X actual idle Hours
=` 25 X 5,000Hrs.
= 1,25,000(A)
(ii)       Total Variable Overhead Variance
Standard Variable Overhead for Production- Actual Variable Overheads.
=`15X(10hrs X 9,000 units) -16,00,000
= ` 13,50,000 - ` 16,00,000
= ` 2,50,000(A)
(iii)     Variable Overhead Expenditure Variance
=Budgeted Overheads for Actual Hours worked –Actual variable Overheads
= `15 X 1,05,000 hrs - `16,00,000
= `15,75,000 - `16,00,000
= `25,000(A)
(iv)     Variable Overhead Efficiency Variance
=Standard Variable Overhead for output-Budgeted Overheads for Actual Hours
OR
= Standard Rate per hour X (Standard Hours for actual Output-Actual Hours Worked)
= ` 15 X (90,000 hrs – 1,05,000 hrs)
= ` 2,25,000(A)

Ø  Overheads can also be affected by idle time. IT is usually assume that overheads expenditure is incurred in active hours only.
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Wednesday 19 March 2014

Amendment batch of CA Final Indirect Tax May 2014

07:16 | Posted by | | Edit Post
Dear All,
Amendment class of CA Final Indirect Tax by CA Manoj Batra sir will be conducted as per below mentioned schedule.


Subject:- CA Final Indirect Tax Amendment

Date:- 1st,3rd,5th & 6th April'14

Time:- 10:45am to 2:00pm

Course fees:- Rs.300 for Old students of IDT and Rs.600 for other students
 
Note:- This fee is applicable for those students, who wants to join only Amendment classes. Those students, who has already joined Revisionary Cum Amendment batch they don't need to pay for Amendment classes.
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