A production company with an annual normal production capacity of 4,800 units/year calculates its costs according to the normal cost method. The enterprise has actually produced 300 units/month in April 2021. The production costs of the enterprise for the period of April 2021 were realized as follows, according to the full cost method. Direct Raw Material and Material Expenses(D) 3.000.-₺ Direct Labor Costs(D) 2.700.-₺ General Production Expenses(D) 2.400.-₺ General Production Expenses (S) 2.000.-₺ Required: Business: a) Calculate the “Unit Cost of Goods Produced” for the period of April 2021. b) If the "Actual Production Amount" for the period of April 2021 was 340 units/month (assuming that other data remain constant and unchanged), calculate the "Unit Cost of Goods Produced". A. a) 32.88.-₺/br ; b) 32.00.-₺/br B. a) 33,66.-₺/br ; b) 29,70.-₺/br C. a) 32.00.-₺/br ; b) 32.00.-₺/br D. a) 32.00.-₺/br ; b) 32.88.-₺/br E. a) 32.00.-₺/br ; b) 28,82.-₺/br F. a) 27,41.-₺/br ; b) 24,24.-₺/br
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
5)
A production company with an annual normal production capacity of 4,800 units/year calculates its costs according to the normal cost method. The enterprise has actually produced 300 units/month in April 2021. The production costs of the enterprise for the period of April 2021 were realized as follows, according to the full cost method.
Direct Raw Material and Material Expenses(D) 3.000.-₺
Direct Labor Costs(D) 2.700.-₺
General Production Expenses(D) 2.400.-₺
General Production Expenses (S) 2.000.-₺
Required: Business:
a) Calculate the “Unit Cost of Goods Produced” for the period of April 2021.
b) If the "Actual Production Amount" for the period of April 2021 was 340 units/month (assuming that other data remain constant and unchanged), calculate the "Unit Cost of Goods Produced".
A. a) 32.88.-₺/br ; b) 32.00.-₺/br
B. a) 33,66.-₺/br ; b) 29,70.-₺/br
C. a) 32.00.-₺/br ; b) 32.00.-₺/br
D. a) 32.00.-₺/br ; b) 32.88.-₺/br
E. a) 32.00.-₺/br ; b) 28,82.-₺/br
F. a) 27,41.-₺/br ; b) 24,24.-₺/br
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