Solution-Prepare a standard cost card for product a

Prepare a standard cost card for product a

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Reference no: EM132979278

Nationalic makes one product, product A. Two types of labor are involved to produce product A; skilled and semi-skilled labor. The cost of skilled labor is €9 per hour and for semi-skilled is €6 per hour. To produce one unit of A, you need 4 hours of semi-skilled labor and 8 hours of skilled labor.

Product A is made up of three different direct materials, as follow:

Type Quantity Cost

Material X 7 kilograms €1

Material Y 5 liters €1

Material Z 3 meters €3

Variable overheads are charged at the rate of €2.50, per direct labor skilled hours.
A system of absorption costing is used is used by Geomatic. The basis is the direct labor skilled hours. For the coming accounting period, budgeted fixed costs are €100.000 and the budgeted production in units is 5,000.
Administration expenses are added to the cost of the product at the rate of €10 per unit.
A mark up of 25% is made for A.

Required

Problem 1: Prepare a standard cost card for product A.

Reference no: EM132979278

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Prepare a standard cost card for product a

Reference no: EM132979278

Reference no: EM132979278

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