From the following data write the standard cost card for one unit of the sole product manufactured.
Standard Cost card for One Unit
Direct Materials
20 Kgs A @Rs.0.80 per Kg
15 Kgs B @Rs.2.40 per kg
Director Labour
Preparation 14 hrs @ Rs.3.75 per hour
Assembly 5 hrs @ Rs.2.50 per hour
The budgeted full overheads for year:
Rs. Hours
Preparation Dept. 88,000 21,000
Assembly Dept. 150,000 24,000
The fixed overheads (contained in the above figures) are Rs. 25,000 and Rs. 48,000 respectively.
Requirement: The standard cost card should show sub totals for:
a. Prime cost
b. Variable production cost
c. Total production cost