# How to start the Mini - Practice set?

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## Description

In this project you will apply the techniques and principles of budgeting and standard costs to the operations of Speedway Toys, Inc. You will prepare budgets for the year ended December 31, 20xx, determine standard costs per hour and per unit of product, and compute variances for the month of January 20xx.

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Hello buddy, below is the
completed assignment. Thank you.

Surname 1

Name
Course:
Professor:
Date:
Budgeting procedure to be completed
Completed in Excel. Please use the attached excel sheet one.

Standard cost accounting procedures to be completed
Some calculations are also shown in the excel sheet two
B1-SUMMARY OF MATERIAL COSTS
MATERIAL
Plastic
Motors

AMOUNT
7050 lb at \$ 3.60 per lb
4975 motors at \$6.24 per
motor
4880 sets at \$ 0.425 per set

Wheels and axles

TOTAL AMOUNT
\$25380
\$31044
\$2074000

B2- SUMMARY OF LABOUR COSTS
DIRECT LABOUR
Moulders
Assemblers

HOURS
930 Hour
1510 hour

RATES
\$15.20 per hour
\$18.40 per hour

B3-QUANTITY AND PRICE VARIANCES FOR EACH MATERIAL
➢ Variance is deviation of actual costs from standard costs

TOTAL COST
\$14136
\$27784

Surname 2
➢ Materials price variance is the result of deviation of actual price for materials from what has been
set as standard
➢ Formula : Direct materials price variance=(Actual quantity purchased*actual rate)-(Actual
quantity purchased*Standard Rate)
VARIANCE FOR PRICE OF PLASTICS
Therefore:
(7050*3.60)-(7050*3.40)
➢ 25380-23970
➢ The variance for plastics is \$140

VARIANCE FOR PRICE OF MOTOR ASSEBLY
➢ Direct materials price variance =(Actual quantity purchased*actual rate)-(Actual quantity
purchased*standard rate)
➢ (4000*\$6.50)-(4000*\$6.24)
➢ 26000-24960
➢ 1040

Variance for price of wheels and axles
➢ Direct materials price varia...

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