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  • Analysis of Material Cost 2

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    Bright Vega
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    The document analyzes the actual, standard, and recommended material costs over a 10 day period. It shows the number of units produced each day, actual costs, standard costs calculated at $0.52 per unit, and recommended costs increased by 20% from standard. It then calculates the variable cost rate per unit as $0.624 and shows the fixed costs are $0 for both the highest and lowest production days.

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    ANALYSIS-OF-MATERIAL-COST-2

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    The document analyzes the actual, standard, and recommended material costs over a 10 day period. It shows the number of units produced each day, actual costs, standard costs calculated at $0.52 per unit, and recommended costs increased by 20% from standard. It then calculates the variable cost rate per unit as $0.624 and shows the fixed costs are $0 for both the highest and lowest production days.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    6 views2 pages

    Analysis of Material Cost 2

    Uploaded by

    Bright Vega
    The document analyzes the actual, standard, and recommended material costs over a 10 day period. It shows the number of units produced each day, actual costs, standard costs calculated at $0.52 per unit, and recommended costs increased by 20% from standard. It then calculates the variable cost rate per unit as $0.624 and shows the fixed costs are $0 for both the highest and lowest production days.

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    © All Rights Reserved
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    of 2

    ANALYSIS OF MATERIAL COST

    DAY NUMBER ACTUAL STANDARD RECOMMENDED UNIT


    OF UNITS COST COST COST COST
    UNIT COST INCREASED BY 20%
    ( 0.52 )
    1 1,500 1,320 780.00 936.00 0.624
    2 2,150 2,900 1,118.00 1,341.60 0.624
    3 3,750 4,500 1,950.00 2,340.00 0.624
    4 1,250 1,400 650.00 780.00 0.624
    5 1,875 2,600 975.00 1,170.00 0.624
    6 2,500 2,850 1,300.00 1,560.00 0.624
    7 3,125 4,500 1,625.00 1,950.00 0.624
    8 625 1,400 325.00 390.00 0.624
    9 1,875 2,400 975.00 1,170.00 0.624
    10 3,125 4,000 1,625.00 1,950.00 0.624
    19, 625 27,820 11,323 13,587.60 6.24

    FOR 10 DAYS PERIOD


    Variable cost rate

    2,340 - 390 / 3,750 - 625

    = 1,950/ 3,125

    = 0.624

    Fixed cost

    = 2,340 -[ .624 x 3,750]

    = 2,340 - 2,340

    =0

    =390 -[ .624 x625]


    = 390- 390

    =0

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