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Problem - Assume that Laptop parts assembly company producing 350 laptops during 2019. The management has drawn up a standard cost plan as follows: The standard quantity of direct material is 30 parts, natural loss of parts 3%, damaged parts 1%, the standard price is S Bipart. While the actual units used are 14,560 parts, each part 5 6. The standard direct labor time is 8 hours, and the standard number of workers is 10. Standard damaged rate is 5%, standard production stops 5%, standard work break is 1.5 hour, standard direct labor wage is 3 plus 1 as a bonus. While in fact, the direct labor hour is 31,325, the actual wage is the same as the standard price but without the bonus. The application standard rate is direct material quantity. And the application standard rate is S 4! part. While in actuality, the total overhead cost is $43,000.
Required -
1 - Calculate the standard and actual costs.
2 - Analyze the deviation for each element and provide a comment in the result of deviation.
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