Labor Standards Types,quantity,cost of labor used Production,setup,cleanup,and rework Time and motion studies,industrial engineering studies Operations Flow Document Include wages,taxes,and fringe benefits Standard Labor Hours Wage Rate Cost 海南大学董建华讲授 10-6
海南大学董建华讲授 10- 6 Labor Standards Types, quantity, cost of labor used ◼ Production, setup, cleanup, and rework ◼ Time and motion studies, industrial engineering studies ◼ Operations Flow Document ◼ Include wages, taxes, and fringe benefits Standard Labor = Hours * Wage Rate Cost
Overhead Standards Predetermined factory overhead application rates Standard Standard Direct Materials Cost Standard Direct Labor Card Manufacturing Overhead 海南大学董建华讲授 10-7
海南大学董建华讲授 10- 7 Overhead Standards Predetermined factory overhead application rates Standard Standard Direct Materials Cost Standard Direct Labor Card Manufacturing Overhead
A Case Study To illustrate,assume that Xonic,Inc.,wishes to use standard costs to measure performance in filling an order for 1,000 gallons of Weed-O,a liquid weed killer. Direct Materials Standard Cost per unit which should be incurred purchasing department's best estimate of the cost of raw materials include amount for related costs WEED-O receiving,storing,and handling 海南大学董建华讲授 10-8
海南大学董建华讲授 10- 8 A Case Study To illustrate, assume that Xonic, Inc., wishes to use standard costs to measure performance in filling an order for 1,000 gallons of Weed-O, a liquid weed killer. Direct Materials Standard Cost per unit which should be incurred ◼ purchasing department’s best estimate of the cost of raw materials ◼ include amount for related costs ◼ receiving, storing, and handling WEED-O
Setting Direct Materials Price Standard The materials price standard per pound of material for Xonic's weed killer is: WEED-O Item Price Purchase price,net of discounts $2.70 Freight .20 Receiving and handling 10 Standard direct materials price per pound S3.00 海南大学董建华讲授 ☐10-9
海南大学董建华讲授 10- 9 Item Price Purchase price, net of discounts $2.70 Freight .20 Receiving and handling .10 Setting Direct Materials Price Standard Standard direct materials price per pound $3.00 The materials price standard per pound of material for Xonic’s weed killer is: WEED-O
Direct Materials Standard Quantity of direct materials used per unit of finished goods Physical measure pounds,barrels,or board feet,etc. includes allowances of unavoidable waste and normal storage. 海南大学董建华讲授 10-10
海南大学董建华讲授 10- 10 Direct Materials Standard Quantity of direct materials used per unit of finished goods Physical measure ◼ pounds, barrels, or board feet, etc. ◼ includes allowances of unavoidable waste and normal storage