Bonarita Merger products the popular Walangkati face powder and has in its budget the following standards for one kilo of the face powder: Ingredients (Input) Paminta (20%) Gawgaw (70%) Standard Quantity (Grams) Standard Unit Cost Standard Cost 200 P 3.00 P 600 P 2,800 P 500 P 3,900 700 P 4.00 Atsuete (10%) 100 P 5.00 ТOTAL 1,000 The company reported the following production and cost data for the period: Standard Quantity (Grams) Ingredients (Input) Standard Unit Cost Standard Cost P 4.00 P 3.00 Paminta 45,000 P 180,000 P 375,000 P 180,000 P 735,000 Gawgaw 125,000 Atsuete 30,000 P 6.00 ТOTAL 200,000 Walangkati face powder production totalled 190 kilos.

Q: Define cost behaviour.

A: High-Low Method: The high-low method is the method by which the variable component and the fixed…

Q: Explain the implementation issues of the cost estimation methods

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Q: what are the possible causes of favourable Material usage variance

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Q: Crritically identify the possible causes of the labour and material variances

A: Labor variances in a business refer to the differences between the expected or budgeted labor costs…

Q: types of cost drivers with example?

A: Explain the types of Cost Drivers.

Q: What are the factors Affecting Cost Management?

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Q: Classify the following cost drivers as structural, executional, or operational.

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Q: what are the possible causes of adverse Material usage variance

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Q: What is activity base cost management?

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Q: Explain how a scatter graph is used to identify and measure cost behavior.

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Q: The standards for direct materials are made up of which of the following components? a.variance…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: What is a component cost?

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Q: Define cost structure.

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Q: Explain the term flexible budget variance.

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Q: Explain the following concepts: indirect materials Mixed cost Budgeting Margin of safety

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Q: Define cost drivers.

A:

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Q: Describe planning for variable overhead costs.

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A: Cost:   Cost can be defined as the cash and cash equivalent which is incurred against the products…

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A: Answer: The distribution of profit and losses are done on the basis of decided ratio.

Q: Describe the components of contribution margin.

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Q: Define and describe contribution margin per unit.

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Q: What is the cost per equivalent unit for materials?

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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.