The Following Standard Costs Were Developed for One of Commodore

question 42

Essay

The following standard costs were developed for one of Commodore Company's products:
STANDARD COST CARD
PER UNIT $\begin{array}{llr}\text { Direct materials: } & 4 \text { pounds } \times £ 5 \text { per pound } & £ 20.00 \\\text { Direct labour: } & 1.5 \text { hours } \times £ 20 \text { per hour } & 30.00 \\\text { Variable overhead: } & £ 10 \text { per hour } & ?\end{array}$

Fixed overhead
Total standard cost per unit The following information is available regarding the company's operations for the period: $\begin{array}{ll}\text { Units produced } & 15,000 \\\text { Materials purchased } & 90,000 \text { pounds at } £ 3.60 \text { per pound } \\\text { Materials used } & 80,000 \text { pounds } \\\text { Direct labour } & 9,000 \text { hours at } £ 16.50 \text { per hour }\\\text { Overhead incurred: }\\\text { Variable } & £ 220,000 \\\text { Fixed } & £ 640,000\end{array}$ Budgeted fixed overhead for the period is £600,000, and expected capacity for the period is 20,000 direct labour hours.
a.Calculate the standard fixed overhead rate.
b.Complete the standard cost card for the product.

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Definitions:

Blended Families

Families formed by the merging of parents and their children from previous relationships into a new familial unit.

Identity

Refers to the qualities, beliefs, personality, looks, and expressions that make an individual or group.

Unrealistic Belief Systems

Refers to belief systems that are not grounded in reality or evidence, often leading to expectations and behaviors that are not achievable or rational.

Intellectualization Avenue

The process of reasoning and thinking through problems in a way that detaches from the emotional aspects, often used as a coping mechanism to deal with psychological stress.